Finance, Forex and Investments

Central Bank and Treasury print money and circulate to the whole country. How does the system works?

How is it possible that Central bank sustainably prints and circulate money to public and institutions? CB can issue securities and collect money from the economy and and inversely spread money by purchasing securities. Then how is it possible that the public of a country, say USA citizens and institutions, hold trillions of dollars continuously?

Public Comments

1. Wait a minute here. It is the Federal Reserve (a private corporation of rich bankers) that controls the flow of money. We would be lucky if we still had Treasury Notes backed by the Gold standard. We are living on debt right now with continual wars being financed by the Fed, the printing presses are running day and night and we are going deeper in debt! We must return to Treasury notes issued by the government and not some private corporation!
2. TO user RICHARD NEVA Richard Neva is totally incorrect in saying that the Federal Reserve is a private corporation of rich bankers. It is a clear misrepresentation of the fact that the US central bank [Federal Reserve] is a US Government sanctioned private instution, created by legislation, to independently run monetary policy. This is to prevent politics crippling the Fed's ability to fulfill their duties. They are not some bunch of private bankers swindling the economy, unlike what Richard Neva implied. And yes Richard: the Federal Reserve is the central bank of the US. PRINTING MONEY The central bank has the sole responsibility of printing money in the economy. Some of the reasons for printing mmoney are: people lose money; people accidently destroy money (eg. leaving it in the wash); the population increases (which causes unnecessary inflation); etc. I don't know too much on the securities part though, as I'm currently studying it. Maybe next semester!