Archigallus

numbers and stuff

[Archigallus @archigallus]

@rohangrey @briankkeyser @ProfSteveKeen @StephanieKelton It is borrowing, it's called a "Lombard credit".

Likewise all repos, reverse repos and QE are some kind of Lombard credit.

[Archigallus @archigallus]

@rohangrey @BSpookoo @mfrancesryan @ProfSteveKeen @StephanieKelton Reserves come into existence when the FED buys assets(bonds) on the secondary market from banks.

Primary dealers buy gov. debt on the primary market, by creating new deposits themselves, commercial banks create all the money except paper bills and coins.

[Archigallus @archigallus]

@rohangrey @mfrancesryan @ProfSteveKeen @StephanieKelton FED buys T-bills and bonds at the secondary market only from prim. dealers, and than creates reserves.

Primary dealers create new deposits(money) on their own when buying gov. debt, without the FED.

All lending must go trough commercial banks, so FED can set the interest rates