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<p>[QUOTE=&quot;LETSBUYCOINS, post: 185537, member: 2657&quot;]The government is not a private enterprise.&nbsp; Theres no point to the federal reserve trying to make a profit on printing money.,&nbsp; Firstly, profit is defined as taking in more money than you send out. if the reserve had to take in more money than it created and distributed, then this creates a fiscal negative in the economy. The economy is you and me.&nbsp; If we had to pay&nbsp; a value for the money coming into the economy, that leaves us with zero money, plus owing money to the federal reserve.&nbsp; Fact is, the sum of all coins and cash in existance is far less than the actual sum of cash balances that exist on computer records.&nbsp;&nbsp; There has to be enough cash in the economy to stimulate commerce and consumer buying.&nbsp; &nbsp; Not enough cash cripples the economy.&nbsp; Not enough cash means the consumer has no money to spend.&nbsp;&nbsp; Too much cash cripples the economy.&nbsp;&nbsp; Jf the streets were flooded with cash, then nobody would want to work, and then the economy would collapse, the surplus of cash would make the cash worthless.&nbsp; You pay taxes.&nbsp;&nbsp; The government pays its employees and its outside vendors with the flow of tax money.&nbsp;&nbsp; Money is constantly moving.&nbsp; &nbsp; Old money gets worn out and gets destroyed.&nbsp;&nbsp; Or a stash of money gets destroyed when grampa falls asleet and the cigar lights the house on fire.&nbsp;&nbsp; Or John Gotti and associates hide their money in the attic where it sits for 30 years.&nbsp;&nbsp; So the supply of money wears down, the banks dont have cash.&nbsp; The federal reserve starts up the printing press and prints cash to fill orders from the banks for more cash.&nbsp; &nbsp; The congressional budget office determines how much it costs to print money.&nbsp; They authorize in the budget a transfer of cash from the treasury to the federal reserve.&nbsp; the federal reserve pays its suppliers and its customers, and bada-bing.&nbsp;&nbsp; And the whole thing is a roller-coaster that never stops.&nbsp;&nbsp; it&nbsp; just rolls from one generation to the next, until the sun burns out.&nbsp;&nbsp; BUT THERE IS NO POINT TO ASSESSING A PROFIT AND LOSS FORMULA TO PRINTING MONEY.[/QUOTE]</p><p><br /></p>

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