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<p>[QUOTE="fatima, post: 1105743, member: 22143"]You are confused at what is going on. It's the Federal Reserve that is responsible for creating the supply dollars, not the US Treasury. The US Treasury can issue dollars in the form of US States Notes but has not done so since 1971. These types of dollars are commonly known as red stamps and are collectible now. The only dollars in circulation now are Federal Reserve Notes. The supply of Federal Reserve dollars are 100% the domain of the Federal Reserve. </p><p><br /></p><p>If the Federal Reserve needs actual paper money printed, then it contracts with the Bureau of Engraving to print this currency. These dollar bills are then shipped to the Federal Reserve and made available to the US Banking system. The Federal Reserve pays the US Treasury for the printing services. It does not pay them anything for the actual FRNs nor does it pay the US Treasury any interest on what has been printed.[/QUOTE]</p><p><br /></p>
[QUOTE="fatima, post: 1105743, member: 22143"]You are confused at what is going on. It's the Federal Reserve that is responsible for creating the supply dollars, not the US Treasury. The US Treasury can issue dollars in the form of US States Notes but has not done so since 1971. These types of dollars are commonly known as red stamps and are collectible now. The only dollars in circulation now are Federal Reserve Notes. The supply of Federal Reserve dollars are 100% the domain of the Federal Reserve. If the Federal Reserve needs actual paper money printed, then it contracts with the Bureau of Engraving to print this currency. These dollar bills are then shipped to the Federal Reserve and made available to the US Banking system. The Federal Reserve pays the US Treasury for the printing services. It does not pay them anything for the actual FRNs nor does it pay the US Treasury any interest on what has been printed.[/QUOTE]
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