03-14-2020, 01:40 PM
I've addressed this in at least 2 threads already in the last 2 days.
The Federal Reserve did not give away $1.5t. They gave out short term loans that are completely backed by treasury securities. They do this by purchasing those bonds from financial institutions with an agreement that the institutions will buy them back with interest. The $1.5t was 2 sets of $500b 3 month loans and 1 set of $500b 1 month loans.
This is part of open market operations and is the main way that the Fed funds itself. By purchasing bonds, they increase the money supply during times when financial institutions need more liquidity.
This money they used was not available for congressional appropriation. They did not need Congress or Trump's approval for this. They operate independently.
When AOC and Bernie tweet that we could have spent this money on M4A or student loans, they are intentionally misleading voters to fire their base up, considering that one has been in Congress for decades and the other has an economics degree. It's irresponsible and what we all criticize Trump for doing.
The Federal Reserve did not give away $1.5t. They gave out short term loans that are completely backed by treasury securities. They do this by purchasing those bonds from financial institutions with an agreement that the institutions will buy them back with interest. The $1.5t was 2 sets of $500b 3 month loans and 1 set of $500b 1 month loans.
This is part of open market operations and is the main way that the Fed funds itself. By purchasing bonds, they increase the money supply during times when financial institutions need more liquidity.
This money they used was not available for congressional appropriation. They did not need Congress or Trump's approval for this. They operate independently.
When AOC and Bernie tweet that we could have spent this money on M4A or student loans, they are intentionally misleading voters to fire their base up, considering that one has been in Congress for decades and the other has an economics degree. It's irresponsible and what we all criticize Trump for doing.
![[Image: ulVdgX6.jpg]](http://i.imgur.com/ulVdgX6.jpg)
![[Image: 4CV0TeR.png]](https://i.imgur.com/4CV0TeR.png)
