Quantitative easing - how does it work?

[Anonymous No.16021989]

I don’t really understand how the purchase of government bonds by the Fed expands the money supply.

Where does the Fed get the money to buy the bonds?

Once the government has the money from purchased bonds what is done with it? I don’t understand how it becomes part of the circulating money. Is it just lent to the banks and enters the monetary base that way?

[Anonymous No.16021999]

>>16021989
>Where does the Fed get the money

[Anonymous No.16022005]

>>16021999
Chekt and chinesed

[Anonymous No.16022983]

bump

[Anonymous No.16023169]

>>16021999
Get chinked

[Anonymous No.16023625]

>>16021989
>Where does the Fed get the money to buy the bonds?
thin air

>Once the government has the money from purchased bonds what is done with it? I don’t understand how it becomes part of the circulating money.
by spending them

[Anonymous No.16023896]

>>16023625
Then how in the everloving fuck has it NOT created inflation

[Anonymous No.16023932]

>>16023896
Shush. Don't question things, goyim.

[Anonymous No.16023934]

>>16023896
The dollar is down 97%

You just have to zoom out.

[Anonymous No.16023955]

>>16023625
I don't understand why commercial banks have the faith in accepting credit created by the Fed out of thin air... like how does that work lmao do they literally just will dollars into existence that banks will trade their bonds for?

[Anonymous No.16023970]

>retarded question
>On a north vietnamese sparrow breeding forum
OP is truly always a lazy ass faggot not able to do his own research

[Anonymous No.16023980]

>>16023934
But QE started in 2009

[Anonymous No.16024063]

>>16023896
Real inflation is about 10% per year, the government manipulates its data to make inflation look low, the cost of everything is increasing exponentially

Effects of 10% inflation:

2019: $100
2020: $110
2021: $121
2022: $133
2023: $146
2024: $161
2025: $177
2026: $195
2027: $214

http://www.shadowstats.com/alternate_data/inflation-charts

[Anonymous No.16024089]

They create it out of thin air. That's how any loan from a chartered Bank is created. Look up fractional reserve.
It's where inflation comes from.
It's legalised counterfeiting.

[Anonymous No.16024132]

>>16021989
>Where does the Fed get the money

Once you know it you want to be all in cripto

[Anonymous No.16024143]

[Anonymous No.16024171]

>>16024063
holy shit at the blackpill in that link

[Anonymous No.16024272]

>>16024171
Wait until you see unemployment

[Anonymous No.16024275]

>>16021989
Government: I need money
Treasury bond goes to Goldman
Goldman sends to Fed
FED WRITES A CHEQUE AND CREATES MONEY FROM THIN AIR
Since this is now ‘money’, Goldman passes back to Government (they take a lil cut)
Government spends ‘money’

[Anonymous No.16024523]

>>16024272
this is getting absurd.
Is this site legit or is it a "dude, trust me" type of site?

[Anonymous No.16024545]

>>16024523
I can't speak for shadowstats but yea unemployment is always reported low because they only count people that are unemployed and ACTIVELY seeking employment. If you live on welfare, disability, or are just retired you aren't counted, which makes some sense. Shadow stats is likely rolling in most if not all of those people into the unemployment numbers.

[Anonymous No.16024614]

>>16023955
Well it works so long as people continue to believe. Sounds retarded but its true.

[Anonymous No.16024695]

>>16023896
>what is econ 101?
M·V = P·T
business and finance, everyone

[Anonymous No.16024995]

>>16024695
>Velocity of money
Don't give me that commie bullshit.
The very fact that it doesn't have a unit of measurement tells you it doesn't exist.

[Anonymous No.16025447]

>>16021989
contrary to want people here and elsewhere believe, quantitative easing DOESN'T expand the money supply, it simply moves securities from the market to the Feds balance sheet, the purpose of this is to change market rates not the money supply

[Anonymous No.16025700]

>>16023896
Here's the trick.

All this money is not circulating among joe schmoe who uses this money to buy chocolates and cars. It is all funneled into financial instruments and assets like housing. So a bunch of rich assholes who got rich off of the fed bailing them our is just buying overinflated assets and derivatives from each other with trillions of dollars while none of it ever trickles down into the real economy and prevents inflation of beer and bread.

Tl;dr: a few bubbles absorb all the inflation.

[Anonymous No.16025744]

>>16021989
Read this thread
>>16006742
>>16006754
>>16006834
>>16006987
>>16007427
>>16007436
>>16007906
Highlight posts by OP and read responses

[Anonymous No.16025748]

>>16025700
Based. This is the true blackpill.
The closer you get to the fed's money supply, the richer you become.
This is how billionaires are made.

[Anonymous No.16025904]

>>16025748
This