BOOM FINANCE HAS A GREAT EXPLANATION AFTER HAVING SOME FUN WITH THE DUMBEST ECONOMIST IN HISTORY WHO HAPPENS TO BE BRANDON’S ADVISOR

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JARED BERNSTEIN HAS NO CLUE WHATSOEVER

Jared Bernstein is the Chairman of the Council of Economic Advisers for President Joe Biden.

An interview was recently published on Twitter/X. It shows Jared Bernstein unable to clearly explain how the US Government finances itself. He dithers and stumbles forward.

BOOM was shocked, shocked by the lack of knowledge, the confusion, the inability to explain US Government finances.

Watch the short video carefully and form your own conclusions. Then come back to BOOM and read on.

https://twitter.com/i/status/1786050601236779078

and also here ……

https://twitter.com/CollinRugg/status/1786467722790048050

As well as being President Joe Biden’s chief economic advisor, Bernstein is also a senior fellow at the Center on Budget and Policy Priorities. From 2009 to 2011, Bernstein was the chief economist and economic adviser to Joe Biden when he was Vice President in the Obama Administration.

He is an ex-Jazz musician, graduated with a bachelor’s degree in music from the Manhattan School of Music where he studied double bass. He also earned a Master of Social Work from Hunter College as well as a DSW in social welfare from Columbia University’s school of social work.

However, somehow, in 1992, Bernstein started working as a senior official at the Economic Policy Institute (EPI), a liberal think tank with a focus on issues affecting low- and middle-income working people. And, somehow, from 1995 to 1996, he served in the United States Department of Labor as deputy chief economist. He then returned to the EPI, as senior economist and director of the Living Standards Program.

Bernstein sits on the Congressional Budget Office’s advisory committee and he is a contributor at the financial news network CNBC.

It all sounds like the stellar career of an economics expert. Until this was published on Twitter/X. Fortunately, it will not be censored.

https://twitter.com/i/status/1786050601236779078

QUOTE from the Twitter Post: “Biden economic advisor Jared Bernstein turns into bumbling mess after he’s asked why the government borrows money if they can just keep printing it. We are so screwed.”

Question: “They print the dollar. So why does the government even borrow?

Bernstein: “Well, so the, I mean again, some of this stuff gets some of the language that the mmm, some of the language and concepts are just confusing. … The government definitely prints money and then it lends that money by, by selling bonds. Is that what they do? They, they, they, yeah, they, they, they sell bonds. … So, yeah, I, I, I guess I’m just, I don’t, I can’t really talk. I don’t, I don’t get it. I don’t know what they’re talking about.”

BOOM TO THE RESCUE — THIS IS HOW IT WORKS, JARED.
THE FED DOES NOT “PRINT MONEY”

BOOM can offer some help and clarity to Jared (if he cares enough to learn) and others —

The Federal Reserve is America’s central bank. Its job is to manage the US money supply, 98 % of which is digital at origin and begins life on electronic banking ledgers. That credit money is (mostly) created by commercial banks whenever they extend a new loan to a willing borrower. The loan is denominated in the nation’s currency. Physical cash when issued by the US Treasury makes up is the remaining 2 % of money supply at origination.

Many people say the Fed “prints money.” But the Fed doesn’t have a printing press that cranks out physical currency. Only the US Department of Treasury can do that.

The Bureau of Engraving and Printing (BEP) is a government agency within the United States Department of the Treasury. It designs and manufactures U.S. physical currency (cash) and securities (Treasury Notes, Bills, Bonds and TIPS). One of its major goals is to prevent counterfeiting. The currency’s design also conveys dignity, the power of the U.S. economy, and familiar markings that distinguish it as American. The BEP uses distinct designs, paper, and ink. It added subtle background colours to improve security in 2003.

The BEP at the Treasury prints physical dollars (currency/cash) – referred to as Federal Reserve Notes – each year for delivery to the Federal Reserve Banking System and distribution to the commercial banking system. The BEP also redeems Notes that are physically damaged or mutilated.

The Federal Reserve operates as the nation’s central bank and serves to ensure that adequate amounts of physical currency and coins are distributed and in circulation. It also (indirectly) manages the volumes of digital credit money that exist on commercial bank ledgers. It does that via the overnight official interest rate setting by the FOMC (the Federal Open Market Committee). Rarely (very rarely), the Fed engages in QE (Quantitative Easing) when it purchases Treasury Securities from the US Treasury or from the open market. It funds QE through the expansion of Banking Reserves within the banking system. The central bank can sell the assets purchased under a QE Program back into the open market whenever it wishes to do so. The US Government spends the proceeds of its Bond sales in QE into the economy to provide extra economic stimulus.

The BEP does not produce coins – all U.S. coinage is minted by the United States Mint. The US Mint is a bureau of the Department of the Treasury.

So — the US Government’s Treasury Department can (and does) print physical US Dollar notes (at the BEP) and also mints coins (at the US Mint).

When the government spends more than it receives in taxation revenues, it has a Budget Deficit. It finances the excess spending through the issuance of Treasury Securities (T Notes, T Bills and TBonds) to willing investors. These securities are contractual promises made by the US Government. Most nations do the same to finance their budget deficits. Remember, QE is a rare event and the volumes of money involved in QE are relatively small over time compared to the normal cumulative sales of Government securities that occur every year and compared to the cumulative amount of GDP over time.

That video of Bernstein bumbling is now public knowledge. There are many articles in the mainstream media critical of Bernstein’s performance. It cannot be censored.