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NikkiSixx_rivals269993

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Sep 14, 2013
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TampaBaySkers said:
Once again.. where are the short term funds coming from? Depositors should have taken a haircut.
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it's not that simple.. I will try to explain this..

For anyone, who makes remarks on how money is 'printed out of thin air'. They do not understand how accounting works. Specifically the way double entry accounting works.

Everyone easily understands the asset side of money, and this is the ONLY side they ever think of. The USD is actually a debt instrument. When money is 'printed' an asset is created, as well as a liability. Those two offset each other on the balance sheet.

When you buy a 400k home, and for the sake of simplicity, take out a 400k loan, you aren't any richer.. you just have 400K on the asset side, and 400K on the liability side.

Now when it comes to this situation. From the balance sheet of the federal reserve, they 'print up' whatever the reserve assets future value is.. lets say it's 100 billion. They create cash on the asset side and a long term liability on the other side of the equation for the same amount.

The cash is then used to purchase the securities so the cash leaves the balance sheet of the Fed. And in return they receive the securities which go right back on the asset side of the equation. As those securities mature, the asset disappears and the corresponding liability also disappears, but the thing is, you don't even have to wait until those roll off the books.

The fed has 100 billion added to assets, and 100 billion added to liabilities. It's a complete WASH. The taxpayer is not on the hook for any of it.

The next time anyone starts talking about how dollars are printed out of thin air, you MUST consider the other side of that equation to actually understand what is going on.

How do I know this? I used to be an accountant for Deloitte after I got my degree in Accounting.
 
K

king_kong_

Redshirt
Nov 3, 2021
24,413
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NikkiSixx said:
it's not that simple.. I will try to explain this..

For anyone, who makes remarks on how money is 'printed out of thin air'. They do not understand how accounting works. Specifically the way double entry accounting works.

Everyone easily understands the asset side of money, and this is the ONLY side they ever think of. The USD is actually a debt instrument. When money is 'printed' an asset is created, as well as a liability. Those two offset each other on the balance sheet.

When you buy a 400k home, and for the sake of simplicity, take out a 400k loan, you aren't any richer.. you just have 400K on the asset side, and 400K on the liability side.

Now when it comes to this situation. From the balance sheet of the federal reserve, they 'print up' whatever the reserve assets future value is.. lets say it's 100 billion. They create cash on the asset side and a long term liability on the other side of the equation for the same amount.

The cash is then used to purchase the securities so the cash leaves the balance sheet of the Fed. And in return they receive the securities which go right back on the asset side of the equation. As those securities mature, the asset disappears and the corresponding liability also disappears, but the thing is, you don't even have to wait until those roll off the books.

The fed has 100 billion added to assets, and 100 billion added to liabilities. It's a complete WASH. The taxpayer is not on the hook for any of it.

The next time anyone starts talking about how dollars are printed out of thin air, you MUST consider the other side of that equation to actually understand what is going on.

How do I know this? I used to be an accountant for Deloitte after I got my degree in Accounting.
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the national debt is essentially un-callable, rendering this entire diatribe useless
 
R

Redmich

Redshirt
Jun 21, 2022
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After reading the entire 6 pages of this thread - one thing is entirely clear

We can easily afford to pay Hoiberg’s buyout - it’s almost gross negligence on the part of our athletic department not to do so
 
TampaBaySkers

TampaBaySkers

Senior
Oct 30, 2010
18,392
525
103
NikkiSixx said:
it's not that simple.. I will try to explain this..

For anyone, who makes remarks on how money is 'printed out of thin air'. They do not understand how accounting works. Specifically the way double entry accounting works.

Everyone easily understands the asset side of money, and this is the ONLY side they ever think of. The USD is actually a debt instrument. When money is 'printed' an asset is created, as well as a liability. Those two offset each other on the balance sheet.

When you buy a 400k home, and for the sake of simplicity, take out a 400k loan, you aren't any richer.. you just have 400K on the asset side, and 400K on the liability side.

Now when it comes to this situation. From the balance sheet of the federal reserve, they 'print up' whatever the reserve assets future value is.. lets say it's 100 billion. They create cash on the asset side and a long term liability on the other side of the equation for the same amount.

The cash is then used to purchase the securities so the cash leaves the balance sheet of the Fed. And in return they receive the securities which go right back on the asset side of the equation. As those securities mature, the asset disappears and the corresponding liability also disappears, but the thing is, you don't even have to wait until those roll off the books.

The fed has 100 billion added to assets, and 100 billion added to liabilities. It's a complete WASH. The taxpayer is not on the hook for any of it.

The next time anyone starts talking about how dollars are printed out of thin air, you MUST consider the other side of that equation to actually understand what is going on.

How do I know this? I used to be an accountant for Deloitte after I got my degree in Accounting.
Click to expand...
It is that simple..

Yes or No - did SVB fail?

What is the max amount fdic covers depositors if their bank fails?

Depositors were bailed out.. you need to get Janet Yellen’s dick out of your mouth.
 
TampaBaySkers

TampaBaySkers

Senior
Oct 30, 2010
18,392
525
103
Redmich said:
After reading the entire 6 pages of this thread - one thing is entirely clear

We can easily afford to pay Hoiberg’s buyout - it’s almost gross negligence on the part of our athletic department not to do so
Click to expand...
I’m pretty sure fdic would just give us the cash for Hoiberg’s buyout.. bank of Hoiberg was a failure.
 
E

EmormousDouchebag

Redshirt
Dec 21, 2022
2,623
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TampaBaySkers said:
It is that simple..

Yes or No - did SVB fail?

What is the max amount fdic covers depositors if their bank fails?

Depositors were bailed out.. you need to get Janet Yellen’s dick out of your mouth.
Click to expand...
They didnt fail, theyve been brought back under a slightly different name.
 
TampaBaySkers

TampaBaySkers

Senior
Oct 30, 2010
18,392
525
103
EmormousDouchebag said:
They didnt fail, theyve been brought back under a slightly different name.
Click to expand...
In some circles that’s known as failing..


 
H

HankMoody78

Sophomore
Dec 17, 2018
822
129
0
NikkiSixx said:
it's not that simple.. I will try to explain this..

For anyone, who makes remarks on how money is 'printed out of thin air'. They do not understand how accounting works. Specifically the way double entry accounting works.

Everyone easily understands the asset side of money, and this is the ONLY side they ever think of. The USD is actually a debt instrument. When money is 'printed' an asset is created, as well as a liability. Those two offset each other on the balance sheet.

When you buy a 400k home, and for the sake of simplicity, take out a 400k loan, you aren't any richer.. you just have 400K on the asset side, and 400K on the liability side.

Now when it comes to this situation. From the balance sheet of the federal reserve, they 'print up' whatever the reserve assets future value is.. lets say it's 100 billion. They create cash on the asset side and a long term liability on the other side of the equation for the same amount.

The cash is then used to purchase the securities so the cash leaves the balance sheet of the Fed. And in return they receive the securities which go right back on the asset side of the equation. As those securities mature, the asset disappears and the corresponding liability also disappears, but the thing is, you don't even have to wait until those roll off the books.

The fed has 100 billion added to assets, and 100 billion added to liabilities. It's a complete WASH. The taxpayer is not on the hook for any of it.

The next time anyone starts talking about how dollars are printed out of thin air, you MUST consider the other side of that equation to actually understand what is going on.

How do I know this? I used to be an accountant for Deloitte after I got my degree in Accounting.
Click to expand...
Doesn't printing money lower the value of the dollar faster than the average Americans pay would go up? Then we have to pay same tax rates when our dollar doesn't go as far. That's where printing money hurts the American people and where our government officials should be held accountable.
 
TampaBaySkers

TampaBaySkers

Senior
Oct 30, 2010
18,392
525
103
HankMoody78 said:
Doesn't printing money lower the value of the dollar faster than the average Americans pay would go up? Then we have to pay same tax rates when our dollar doesn't go as far. That's where printing money hurts the American people and where our government officials should be held accountable.
Click to expand...

 
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NikkiSixx_rivals269993

All-Conference
Sep 14, 2013
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king_kong_ said:
liability =/= debt?
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the federal reserve is a private bank.. it is not 'federal', nor is it part of the US government. A new liability on their balance sheet does not necessarily equal new debt for the US government. The Fed's balance sheet is around 6-7 trillion dollars. The US Treasury has a debt about 31 trillion dollars. These two things are not the same.
 
N

NikkiSixx_rivals269993

All-Conference
Sep 14, 2013
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TampaBaySkers said:
It is that simple..

Yes or No - did SVB fail?

What is the max amount fdic covers depositors if their bank fails?

Depositors were bailed out.. you need to get Janet Yellen’s dick out of your mouth.
Click to expand...
it is not that simple.. and I am no fan of Janet Yellen. I have tried to educate you and in return you attack me with stupid comments. Piss off.
 
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N

NikkiSixx_rivals269993

All-Conference
Sep 14, 2013
9,783
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HankMoody78 said:
Doesn't printing money lower the value of the dollar faster than the average Americans pay would go up? Then we have to pay same tax rates when our dollar doesn't go as far. That's where printing money hurts the American people and where our government officials should be held accountable.
Click to expand...
Printing money can lower the value of the dollar, the rate of it's devaluation is really more in proportion to how much was printed and how quickly.

The key word also above is 'can'. Printing money at the federal reserve does not always lower the value of the dollar. The example given earlier on how a net wash was created has no impact on the value of the dollar.

There are basically 2 financial systems out there. The one we all think of, where our dollars are floating around chasing goods and services.

There is a second financial system, that is walled off from main monetary system. Increases and decreases in this secondary financial system, do not normally affect the value of the currency floating around.

I agree that government officials should be held accountable. This includes members of the house and senate, who pass the laws and the budgets. They are responsible for spending.

We should never have given government central bank power to a private entity/private bank.

There is a great book I recommend on this called "The Creature from Jekyll Island"

​

 
K

king_kong_

Redshirt
Nov 3, 2021
24,413
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NikkiSixx said:
the federal reserve is a private bank.. it is not 'federal', nor is it part of the US government. A new liability on their balance sheet does not necessarily equal new debt for the US government. The Fed's balance sheet is around 6-7 trillion dollars. The US Treasury has a debt about 31 trillion dollars. These two things are not the same.
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What entity would ever call the Fed’s debt?
 
L

litespeedhuskerfan_rivals19671

All-American
Aug 27, 2006
27,799
5,561
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NikkiSixx said:
Printing money can lower the value of the dollar, the rate of it's devaluation is really more in proportion to how much was printed and how quickly.

The key word also above is 'can'. Printing money at the federal reserve does not always lower the value of the dollar. The example given earlier on how a net wash was created has no impact on the value of the dollar.

There are basically 2 financial systems out there. The one we all think of, where our dollars are floating around chasing goods and services.

There is a second financial system, that is walled off from main monetary system. Increases and decreases in this secondary financial system, do not normally affect the value of the currency floating around.

I agree that government officials should be held accountable. This includes members of the house and senate, who pass the laws and the budgets. They are responsible for spending.

We should never have given government central bank power to a private entity/private bank.

There is a great book I recommend on this called "The Creature from Jekyll Island"

​

Click to expand...

Love reading your takes on this. Not saying I agree with everything in the way you look at it...but it's obvious you have some smarts on the subject.
 
K

king_kong_

Redshirt
Nov 3, 2021
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WHCSC said:
China?
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maybe. I admittedly know nothing about accounting because it is for big time anti-social dorks who can be paid a pittance to do their outrageously boring work.

but I would think mutually assured destruction isn't just a nuclear deterrent but also a financial one

I think it's really cute that Nikki looks at the gov't's books like it's the convenience store on the corner, though. he's so cute!

but none of it is "real" and money is, indeed, printed out of thin air since the debt side of the ledger is completely meaningless
 
TampaBaySkers

TampaBaySkers

Senior
Oct 30, 2010
18,392
525
103
king_kong_ said:
maybe. I admittedly know nothing about accounting because it is for big time anti-social dorks who can be paid a pittance to do their outrageously boring work.

but I would think mutually assured destruction isn't just a nuclear deterrent but also a financial one

I think it's really cute that Nikki looks at the gov't's books like it's the convenience store on the corner, though. he's so cute!

but none of it is "real" and money is, indeed, printed out of thin air since the debt side of the ledger is completely meaningless
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Nikki is the Jim Cramer of this thread.
 
H

HankMoody78

Sophomore
Dec 17, 2018
822
129
0
NikkiSixx said:
Printing money can lower the value of the dollar, the rate of it's devaluation is really more in proportion to how much was printed and how quickly.

The key word also above is 'can'. Printing money at the federal reserve does not always lower the value of the dollar. The example given earlier on how a net wash was created has no impact on the value of the dollar.

There are basically 2 financial systems out there. The one we all think of, where our dollars are floating around chasing goods and services.

There is a second financial system, that is walled off from main monetary system. Increases and decreases in this secondary financial system, do not normally affect the value of the currency floating around.

I agree that government officials should be held accountable. This includes members of the house and senate, who pass the laws and the budgets. They are responsible for spending.

We should never have given government central bank power to a private entity/private bank.

There is a great book I recommend on this called "The Creature from Jekyll Island"

​

Click to expand...
Thanks for the reply. In response to the "can" part... they are doing it while raising minimum wages significantly. The combined effect on current, and now very little starting small businesses has a massive effect on the economy, job market, etc which puts the middle class in a struggle. It's bad economics at a basic level. It's elitism.
 
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