Imagine that you had an intaglio press in your basement. It can churn out crisp twenties at your whim.
The Secret Service calls this counterfeiting. They will hunt you down with extreme prejudice and haul you off to Federal Court. The same thing will happen to you if instead of the intaglio press you have a computer and hack/create some digital money out of nothing.
Contrast that with the Federal Reserve Bank of the United States. They do have both magic machines - intaglio presses and computers that create digital money ex nihilo (out of nothing).
This is called "monetary policy" and amounts to about one trillion dollars per year.
To recap: If you print or create money in your basement, it's called counterfeiting. If the Federal Reserve does the same thing, it's called monetary policy. Go figure!
The Secret Service calls this counterfeiting. They will hunt you down with extreme prejudice and haul you off to Federal Court. The same thing will happen to you if instead of the intaglio press you have a computer and hack/create some digital money out of nothing.
Contrast that with the Federal Reserve Bank of the United States. They do have both magic machines - intaglio presses and computers that create digital money ex nihilo (out of nothing).
This is called "monetary policy" and amounts to about one trillion dollars per year.
To recap: If you print or create money in your basement, it's called counterfeiting. If the Federal Reserve does the same thing, it's called monetary policy. Go figure!
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