Re: Cheney's Halliburton to Control Iraqi Oil?

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On Sunday May 11, 2003 11:13, James Richard Tyrer wrote:
> Andreas Pour wrote:
> > The main way the Fed generates money is on its "overnight loans"
> > ("discount window") to banks.
>
> This a common misconception.  The way that the Fed regulates the money
> supply is through what are called 'open market operations" (as you
> state below).  They buy or sell US Treasury securities.

The Fed does have more than one tool.  See 
http://www.federalreserve.gov/faq.htm :

**
How does the Federal Reserve implement monetary policy? 

The Federal Reserve conducts monetary policy using three major tools: 

(1) Open market operations - the buying and selling of U.S. Treasury and 
federal agency securities in the open market 

(2) Discount rate - the interest rate charged depository institutions on 
loans from their Federal Reserve Bank's lending facility (the discount 
window) 

(3) Reserve requirements - requirements regarding the amount of funds that 
depository institutions must hold in reserve against deposits made by 
their customers.
**

- -- 
Neil Stevens - [email protected]
"The shepherd drives the wolf from the sheep's throat, for which the
sheep thanks the shepherd as a liberator, while the wolf denounces him
for the same act as the destroyer of liberty." -- Abraham Lincoln
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