Our Government & Money
By Arkie69
@Arkie69 (2156)
United States
June 3, 2010 3:16pm CST
I have a question I have asked several people and I have never gotten a straight answer yet A while back I read an article that stated that it was costing the Federal Reserve 9/10 of one cent to print any bill. $1 bill or $1,000 bill it makes no difference. Here's my question. Here these people are sitting with vaults full of $1'000 bills that they have $0.09 invested in. At some point between the Federal Reserve's printing presses and the hands of the public someone is selling those $1,000 for face value and making $999.91 Profit on every one of them. Now you tell me exactly who is making all this profit. Sure wish I couls sell even $1 bills for a $.91 profit. At some point someone is selling those bills at face value and that is a cold hard fact and there is no getting around it.
Art
2 responses
@laglen (19759)
• United States
4 Jun 10
http://www.blurtit.com/q496709.html
The US Treasury prints the our money for the United States Federal Reserve System which despite its misleading title is a private international banking corporation chaired by Ex-Goldman Sachs executive Ben Bernanke. The Fed creates money out of thin air and manages our monetary policy. The treasury borrows money from the fed and us taxpayers pay the interest thru taxes and inflation.
@TTCCWW (579)
• United States
4 Jun 10
No one is actually making any moneyy on the printing (well maybe the paper supplier and ink company's). We the people are in one way or another paying for the printing. This subject has come up because of the cost of the new and improved bills that make it harder to counterfiet.
The value of that dollar is determined by many factors but that dollar is a representation of a value. Somedays it is worth more then others depending on where you spend it.
We used to trade in beads, silver and or gold, the dollar is no different, the value of gold is represetative of what the market values it at that day.
The fed really has very little control over the value regardless how much people want to apply their responsibility. The market determines what it is worth.
1 person likes this
@snapdragons (91)
• United States
3 Jun 10
Hi Arkie. I don't think anyone is selling these bills. The government prints paper money and puts it in circulation. It doesn't matter how much it costs to make a bill, what matters is how much each bill is worth. Every government prints money.
@Arkie69 (2156)
• United States
3 Jun 10
I think you are missing the point I was trying to make. Lets say you have a checking account at a bank. You need $1,000 out of your checking account so you go to the bank and write a check for $1,000. You request a $1,000 Bill so that's what they give you. They deduct $1,000 from your checking account ballance. You just paid face value for that $1,000 bill that someone produced at a cost of $0.9.
If the printer sells that bill to a bank they are making all that profit. If the printer just gives that bill to a bank as you suggest by calling it "putting it in circulation" then the bank is making that huge profit off you. It doesn't matter how many times that bill changes hands between the printer and you there is $999.99 being made on that $1,000 bill. Anything over the $0.9 you pay for the bill is profit that is going into someones pocket. We the people are picking up the tab on this.
Art
