Printing Money

[saturnz]

Don't banks put their keep their money at the reserve bank?

yeah but that doesn't answer the question, you don't just print money and dump it, the resbank buys IOUs from the government and gives government the printed cash. it then sells the IOUs in the future and thus the cash is "removed"

 

[NeonNinja]

Ah yes. Be Zimbabwe v2. Beautiful.

 

[phiber]

the US I think is going to "print" $6T, thats a T at the end, for trillion, or one million million

The major difference is the US will deploy a large portion of this money via QE into listed securities and bonds and reversed these position later. In 08/09 they never needed the whole 2T allocated to TARP and they made a profit of the money they deployed. It was a very effective way to increase liquidity while saving businesses. They really ended up owning parts of these companies and had great governance and oversight.

Putting in a relief fund for South Africa SOEs is a losing strategy. The money will not be returned, they have proven this over and over. The best here is for them to try tighten their belts and survive within what is allocated in the budgets. Where needed small relief should be provided, but in an extremely controlled manner

 

[saturnz]

The major difference is the US will deploy a large portion of this money via QE into listed securities and bonds and reversed these position later...

You go with that