press value
so what is the real value of owning the money printing presses? the dividend is by law 6%. but you get to keep the interest earned on the printed money before you have to turn it over. so like 10%? cause these are some of the savviest investors in the world right? heh. hang on. by the magic of fractional lending, when i print $100, i can loan $90 to you to buy a lemonade stand. the previous owner deposits $90 in my bank. of which i can loan $81 to buy a strawberry stand. the previous owner deposits the $81 in my bank. which i can loan out again and again and again. you can see where this is going. i'm collecting interest on nearly 10x the $100 i originally printed. so yeah i'm only making say 4% on each individual loan. and yeah, that's after the crap interest rate i pay you for your money. that 4% becomes 40% after the magic of fractional lending. neat huh? so the total return on printing money is 46%. even with the 94% tax rate. applying yesterday's argument, the people who own the printing press control 46% of the nation's wealth. so let me ask yesterday's question again. having a stable economy is a valuable thing. but is it worth nearly half of everything you own? so tell me again, why the fuck are we paying people to print money? put the job of the federal reserve up for auction. i bet we can get someone to pay the federal government $1.20 for every $1 they print.