(i) Dirua ez da zuk pentsatzen duzuna
Money: it’s not what you think!
2017 mai. 30
(ii) Dirua: printzipioak
Show this to everybody who needs to understand how our sovereign currency works.
2017 eka. 1
Bideoa: The Basics of Modern Money3
A nation’s currency is a wonderful, powerful thing. Learn how countries like the U.S.—which issue their own sovereign currency—can afford to use that currency to serve their citizens. Get inspired about our untapped potential, and learn to be less worried about the so-called “national debt”!
(iii) AEBko Banku Zentrala (FED) eta Altxor Publikoa (Treasury)
The US government ‘funds itself’ by simply crediting accounts. This is how the Fed describes that process https://www.federalreserve.gov/monetarypolicy/bst_frliabilities.htm …
Federal Reserve liabilities5
(a) Deposits of Depository Institutions
“… When the Federal Reserve lends, all else equal, the total amount of deposits of depository institutions increases. When a depository institution borrows directly from the Federal Reserve, the amount the institution borrows is credited to its Federal Reserve account. When the Federal Reserve lends to a borrower that does not have an account at a Reserve Bank, the Federal Reserve credits the funds to the account of the borrower’s bank at the Federal Reserve. When a borrower of either type repays the Federal Reserve, the process is reversed, and total deposits in depository institutions’ accounts at the Reserve Banks decline.”
(b) Deposits of the U.S. Treasury
“The Federal Reserve is the fiscal agent of the U.S. Treasury. Major outlays of the Treasury are paid from the Treasury’s general account at the Federal Reserve.
The Treasury’s receipts and expenditures affect not only the balance the Treasury holds at the Federal Reserve, they also affect the balances in the accounts that depository institutions maintain at the Reserve Banks. When the Treasury makes a payment from its general account, funds flow from that account into the account of a depository institution either for that institution or for one of the institution’s customers. As a result, all else equal, a decline in the balances held in the Treasury’s general account results in an increase in the deposits of depository institutions. Conversely, funds that flow into the Treasury’s account drain balances from the deposits of depository institutions. These changes do not rely on the nature of the transaction. A tax payment to the Treasury’s account reduces the deposits of depository institutions in the same way that the transfer of funds does when a private citizen purchases Treasury debt. Both actions result in funds flowing from a depository institution’s account into the Treasury’s account. (…)”
