The Fed Has A Big Surprise Waiting For You

[Kimura]

Um....QE isn't printing money, it's an asset swap.

its called printing money or dropping new money from a helicopter, as in "helicopter Ben". The purpose is to preventing deflation in a slowing, recessed, or depressed economy. Its a good thing to do for sure as long as they take they money back out of the economy if it causes inflation.

It's not printing $$$$.

In the case of QE operations, reserves (dollars that have zero duration) are swapped for Treasuries (dollars with a certain amount of duration). This result in no new financial asset being created in any capacity which why we've had no inflation or hyperinflation as predicted by monetarist and hard money nitwits.

They were wrong, you're wrong. I was correct and will continue to be on the other side of trades from people making bad bets off off of incorrect information.

 

[EdwardBaiamonte]

It's not printing $$$$.
I

its called printing money! Do you have the IQ to grasp that, liberal?

 

[Kimura]

It's not printing $$$$.
I

its called printing money! Do you have the IQ to grasp that, liberal?

As I explained many times, it's not printing money you twat. Invoking the evil sounding "printing money" is beyond misleading and deliberate. All transactions between the FED/Treasury and non-government involve the creation and eventual destruction of net financial financial assets denominated in dollars. For example, if the government purchases a widget from the non-government sector, they simply credit a commercial bank account.

It is beyond disingenuous to call this "printing $$$$". If you understood how our monetary system functions, you simply wouldn't use this terminology.

Also, QE needs the short-term interest to be at or near zero. If this didn't happen, the FED wouldn't be able to maintain a positive interest rate target. Any excess reserves would cause a competitive interbank situation and drive down rates.

 

[EdwardBaiamonte]

It is beyond disingenuous to call this "printing $$$$". If you understood how our monetary system functions, you simply wouldn't use this terminology.

.

dear, you are a liberal and so not very bright!! Sorry. Do you think Bernanke understands how the monetary system works??

He said "The U.S. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at no cost."

Ben Bernanke, Princeton professor and former chairman of the U.S. Federal Reserve, has argued that monetary policy could respond to zero interest rate conditions by direct expansion of the money supply. In his words, "We have the keys to the printing press, and we are not afraid to use them."




Se why we are positive that liberalism is based in pure ignorance? Please tell me what other conclusion i spossible??

 

[Kimura]

dear, you are a liberal and so not very bright!! Sorry. Do you think Bernanke understands how the monetary system works??

He said "The U.S. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at no cost."

Ben Bernanke, Princeton professor and former chairman of the U.S. Federal Reserve, has argued that monetary policy could respond to zero interest rate conditions by direct expansion of the money supply. In his words, "We have the keys to the printing press, and we are not afraid to use them."
Se why we are positive that liberalism is based in pure ignorance? Please tell me what other conclusion i spossible??

From former Chairman Bernake:

What the purchases do… is… if you think of the Fed’s balance sheet, when we buy securities, on the asset side of the balance sheet, we get the Treasury securities, or in the previous episode, mortgage-backed securities. On the liability side of the balance sheet, to balance that, we create reserves in the banking system. Now, what these reserves are is essentially deposits that commercial banks hold with the Fed, so sometimes you hear the Fed is printing money, that’s not really happening, the amount of cash in circulation is not changing. What’s happening is that banks are holding more and more reserves with the Fed. Now the question is what happens the economy starts to grow quickly and it’s time to pull back the monetary policy accommodation. There are several tools that we have.

For the 5,000th time, QE is not printing $$$$$.

Click here for video.

 

[EdwardBaiamonte]

For the 5,000th time, QE is not printing $$$$$.

too utterly stupid and 100% liberal of course. Nobody said it was printing money, they said it was like printing money!

Why not beg your mother to explain it to you or better still wait till you get to college at which time perhaps you'll be better equipped to understand nuance and subtlety??

 

[Kimura]

For the 5,000th time, QE is not printing $$$$$.

too utterly stupid and 100% liberal of course. Nobody said it was printing money, they said it was like printing money!

Why not beg your mother to explain it to you or better still wait till you get to college at which time perhaps you'll be better equipped to understand nuance and subtlety??

Now, what these reserves are is essentially deposits that commercial banks hold with the Fed, so sometimes you hear the Fed is printing money, that’s not really happening, the amount of cash in circulation is not changing. What’s happening is that banks are holding more and more reserves with the Fed

----Ben Bernake.

He just explained QE, Ed.

 

[EdwardBaiamonte]

For the 5,000th time, QE is not printing $$$$$.

too utterly stupid and 100% liberal of course. Nobody said it was printing money, they said it was like printing money!

Why not beg your mother to explain it to you or better still wait till you get to college at which time perhaps you'll be better equipped to understand nuance and subtlety??

Now, what these reserves are is essentially deposits that commercial banks hold with the Fed, so sometimes you hear the Fed is printing money, that’s not really happening, the amount of cash in circulation is not changing. What’s happening is that banks are holding more and more reserves with the Fed

----Ben Bernake.

He just explained QE, Ed.

and??? does the liberal have any idea what his subject is?