i dont know that the fed prints money to loan to banks
a harry browne book excerpt says:
on page 43 of harry browne book how you can profit from the coming devaluation a paragraph claims “In modern practice, then, the govt does not print paper money to casue inflation. It prints paper money in response to the inflation that takes place through the bank’s deposit-loan expansion.”
an another post in a different thread says:
“So the inflation is two-fold. Firstly, the Fed pushes new reserves into the system via the OMOs in order to try to bring the FFR down. Secondly the commercial banks pyramid loans on the basis of those reserves. So normally if the Fed increases the monetary base (not typically notes and coins but more commonly by increasing the total quantity of reserves in the system held on account with the Fed itself) by 100 billion you might expect an actual expansion of the overall money supply of maybe 1 trillion (in a very simple example).”
the above quote says ‘pushes reserves’?? i dont kow if that means loaning.
i have heard of a discount window at the fed but i dont know if it is true or not. it was described a device to lend to banks which if true it would seem that the banks would repay. whether dollars were printed or not i am not sure.