$85billion!!!

where do the Reserve get the money? do they print it? gold reserves? next year's taxes? asia?

they get it FROM YOU.

true. Through printing press though. This is additional 85bln usd in circulation. We will all pay at the gas pump and groceries. Socialism for the rich. Communistic China would not do that. It is sad to see the USA becoming parody of this what it used to represent.

Why is this for the rich? I've seen that remark thrown around several times & I don't understand it.

From what I understand, this sort of a move is basically done by inflating the dollar causing anyone who has savings to lose out (the people without savings only lose if their wages don't catch up).

Because only the rich, the people who own/control these mega-corps, are the only ones receiving gigantic funding "bailouts" from the government, meaning they don't face the fallout of their stupid mistakes. It's basically a free ticket to steal money from the American public, but only if you can afford to set up a mega-corp and let it fail while you "earn" multi-million dollar salaries every year regardless of performance...

Are the people who own mega-corps richer then those that own regular corps? Generally speaking, stock is not owned exclusively by the super rich. The lower end of the spectrum (those that also have no savings) do not own stock. Anyway, haven't they lost most of their money already?

On top of that this isn't for the shareholders. It's to keep a financial system from collapsing. You can argue that it wouldn't have collapsed. That this makes it more likely to collapse etc. Sure.

Look at AIG's dividends over the last few years they where pumping out about a dollar a year in dividends and now their stock is worth ~4$. The reason they where able to generate that type of money is the reduction in banking regulation alongside absurdly low interest rates and a willingness of the federal government to bail out companies that are "to big to fail" all off which is giving money to the people who own and or run AIG and companies like them.

PS: If AIG still had all it's dividends from the last 10 years it would not need any government money.

They get it from their vast supplies of T-Bills and Bonds which cover their reserve.

And the money to pay back the bonds comes from only one source - taxes. So yeah, we can borrow it now and make the grandkids pay it off.

No, the money to repay the bonds comes from the sale of future bonds.

all of the above.

where does the treasury and fed get the money? THEY PRINT IT

a 1982 law lets treasury notes be redeemed with CREATED accounts, as in one of the partner banks of the reserve simply creates a new account by punching in the digits, and they assign it to you

once again, this is law since 1982

this is why US treasuries have 100% certainty inside the USA while the US dollar still exists

Wouldn't that increase inflation.

Printing money is by definition inflation (so, yes).

Yes it will increase inflation, but not enough to overcome the deflation currently under way due to credit destruction. Real inflation is a monetary phenomenon driven by the availability (or lack thereof) of cash and credit. Most lenders have been withdrawing credit at rapid pace.

That's why they fudge a little bit when they report CPI and PPI data.

Inflation is yet another form of taxation. A subtle, criminal one, that undermines your savings while you sleep.

Do you know for a fact that they will print it?

I would imagine they would have other alternatives.

it's "fiat money" - more on this by Gary North - http://www.lewrockwell.com/north/north652.html