When a Central Bank Braggs About Having the Ability to Create More Money Out of Thin Air. Is this a joke?

When a Central Bank Braggs About Having the Ability to Create More Money Out of Thin Air. Is this a joke?

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61 Comments on When a Central Bank Braggs About Having the Ability to Create More Money Out of Thin Air. Is this a joke?

  1. kecuoicap

    I think you are missing the context here. The centralized banks use an approach known as Quantitative easing. It is a method that allows the central banks to purchase government assets(keep in mind these are worth a lot of money) so as to affect the economy. This is practiced in economies that have taken a hit. They further sell these assets to increase the supply of money which reduces the ‘COST’ of money in turn reducing the interest rates. Reducing the interest rates eases the flow of cash in the general public which leads to a slightly better equilibrium.

  2. ensdomains

    What about “The general idea that goverment debt can be financed by central banks is a dangerous proprsition.” ???

  3. castorfromtheva

    That’s why there’s bitcoin right now. Those bastards will get very soon, that **bitcoin is the pin popping their fiat bubble!**

  4. TheGreatMuffin

    From the Wikipedia article on Central Banks:

    > A central bank, reserve bank, or monetary authority is the institution that manages the currency, money supply, and interest rates of a state or formal monetary union,[1] and oversees their commercial banking system. In contrast to a commercial bank, **a central bank possesses a monopoly on increasing the monetary base in the state, and also generally controls the printing/coining of the national currency**,[2] which serves as the state’s legal tender.[3]

    It’s literally their job to “create money out of thin air”. Why is everyone so surprised about that tweet?

  5. martinkarolev

    Future generations will look back at us and wonder how such a system has been functioning for so long. Until it collapsed.


    How is this bragging?
    Are you saying the only way to respond to that question without bragging is to either lie or not reply at all.

  7. dam76

    It is a complex matter, but if it does not go out of hand, printing money in a limited, controlled and thoughtful matter can be a good thing for the economy.


    Very simply put, there a two main reason:

    * a very small and controlled amount of inflation (ECB target is 2%) is considered good. There is a lot of economic literacy that confirms this. The problem is when the Central Bank is not independent and the government can impose higher inflation to finance its program.
    * we already know that there are economic cycles (ups and downs) through the years and we would like to mitigate them. Monetary policy is one way to do that, and that is what this tweet is about.


  8. MotherSuperiour

    No its not. It’s a simple and honest description of how central banks work. Would you have preferred it if they lied or answered evasively?

  9. Cutsa

    But that ability is essential for our current economy to function. Inflation is literally a requirement, although it should only hover around 2%. If you want to remove the necessity of inflation then we’d need radically change the worlds entire economic system, not just the currency we use. Consumerism would have to drastically reduce for instance. I’m not opposed to this, just pointing it out.

  10. DK107

    That ain’t workin’, that’s the way you do it
    Money for nothin’ and your chicks for free – Money for Nothing

    Dire Straits

  11. NeuroticKnight

    We give governments and central banks authority to create wealth, in return for centrally planning out the economy. Same way we give governments and military authority to enforce violence, in return for physical safety and regularity in that regard. Some people believe governments should not be doing that and people with money should be the one’s deciding and some people believe same way the military should not do that and people with money can do it through private armies. Okay, they can believe what they want, and i am not going to debate, but don’t accuse the other side of dishonesty, when you yourself secretly know you are in for personal gain and not for social stability.

  12. mcarrillofx

    Nothing new… just kicking the can down street. I remember the day Bernanke said that technically, they were not printing money.

  13. ye-olde-dev

    When a /r/bitcoin poster doesn’t know how to spell “brags”. How does your illiterate self give it a second ‘g’?

  14. Bman409

    This is a corrupt system.

    The government forces you to pay taxes (under threat of imprisonment or loss of property) using money that you can only get from them…. they create it out of nothing.

    The only way you can get it, is to pay the government.. either in labor, or in interest.

    Its slavery. Its also brilliant.. I wish I had thought it up

  15. eddyblaze4

    Most central bank officials these days is asset backed, since central banks create new money when they buy asserts in open market operations or QE and when they lend to banks. But in theory central bank could literally spirit money from thin air without assets purchases or lending to bank.

  16. programerandstuff

    On this episode of most people on r/bitcoin dont really understand basic economics, we talk about how QE is a tool to drive up inflation and stimulate national economies, one of the best ways to do this is to print money. Deflation is a nono, and the ECB is using QE as a tool to fight it. If you want to pick a fight about the ECBs shitty practices, use the fact that they are busy buying “investment grade” corporate bonds instead of government bonds. Printing money is not inherently a bad thing, its one of the levers the fed uses to keep inflation in check.

  17. Bitcoin_21

    Fun fact: When you take out a loan from a normal bank, that money does not come from other customers. The bank itself creates it out of nothing and deposites 1% of the sum at the central bank.

  18. MediumSizedTexan

    Economists see money creation as a tax on the entire population, charged via inflation as a result of money value going down.

  19. DarkAngelEvil

    This is not a Joke and this is Not “Bragging” Every (all countries in the world) have a central Bank and they have legal power to do it, and is in the legislation that they can Print money and stipulate the inflation of the year. Like it or not this is how the world works.

  20. gizram84

    “For as long as the money was controlled by anyone other than the owner, whoever controlled it would always face too strong an incentive to pilfer the value of the money through inflation or confiscation”.

    -Saifedean Ammous

    Seriously, if haven’t read his book, The Bitcoin Standard, you’re really missing out.

  21. ello111

    They aren’t boasting tho. They are being transparent letting people ask them questions. This is great as it will let people decide what they think about it themselfs(:

  22. eph3merous

    spoiler alert, thats the fucking definition of Quantitative Easing. It was a stupid question with a seemingly braggy response


    Thats an incomplete answer. They can create money through taxes or through bonds which is a promise to pay with future tax revenues

  24. Polak_Potrafi

    I am sure last bull run was done by central planners – to pour printed fiat into cryptos and they almost killed it, selling it. And let it rot. Next crash might be even bigger: btc 200k usd and then crash sale it till 20usd. Let ppl go insane, let them kill each other fighting for reall btc while everything dies. Make their useless cash be the main reason why ppl get interested in cryptos.
    Watch Venezuela burn soon for trying to go toward cryptos.

  25. north_remembers78

    The fucking nerve. I finished investing in bitcoin a while ago, these days I just trade my spare garbage money for btc to do my small part in sinking this ship of fools.

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