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Originally Posted by Butterfly Actually the US Treasury print the bank notes, not the Fed. The Fed is in charge of distribution and stocking. |
^^ & ^. The US Treasury acts as the Printer only (well who knows what might get siphoned off for spooks and corrupt foreign dictators, but thats another story
). Kinda stands to reason- they also print T Bonds, Muni Bonds and all sorts of other crap.
The Fed orders the new notes for circulation, solely. They decide how many new notes are to be issued, and they can in fact take notes out of circulation also, not that they would normally be bothered- as you pointed out BF, bank notes are a tiny fraction of money supply.
The Fed itself is quite a fascinating topic, so heres a linkie to an old thread if you're interested:-
http://teakdoor.com/us-domestic-issu...l-reserve.html (The US Federal Reserve)