You don't know what "not selling them." means, do you?
If you know anything about economics, you sure haven't demonstrated it.
You're splitting hairs. The point isn't worth debating. The bottom line is that the FED increases the money supply by selling bonds.
Then why are you debating it?
I read what you post. It is either correct or it ain't. If you say something like "
not selling them.", then I assume that is what you mean.
So, what is your point about the Feds open market operations? Yeah, they buy and sell bonds. So? You clearly don't understand how the money supply functions.
Yeah, the Fed manages the money supply, duh! Their suppose to. GDP keeps climbing. How do you think the money supply is going to grow to account for an ever increasing poplation and GDP? Magically?
The Fed indirectly affects the supply and demand for money. Private banks, businesses, and household create money through borrowing.
Oh, look, month to month, the percent change in CPI is all over the place.
It is as high as .75, as low as about -.3, on a month to month basis, in the near past.
As a yearly average, it is from as high as 4% to as low as 1%, recently.
Last I checked, it has averaged from 2 to 2.5% yearly.
So, what's your point? That you are clueless as to how and why money management is what it is? Cuz, so far, all you've suggested is that you have moronic unstated assumptions. Do you really believe that inflation can be held to absolute zero? Is that it, you have some conspiracy theory?