[xzins]

if you hear a report from NPR or other mainstream shows, you will hear that the Fed is bond-buying. “They completely leave out the fact that the Fed is creating new money in order to do its bond-buying.

[Pelham]

” “They completely leave out the fact that the Fed is creating new money in order to do its bond-buying. “

The Fed is designed to decide what part of the American money supply is available as ‘high powered’ money (cash) and what part is tied up in illiquid bonds. They have the power to convert Treasury bonds into cash- that’s what the ‘bond buying/new money creation’ is all about.

If the economy is stalling the Fed purchases bonds to make cash more available. If the economy is roaring ahead the Fed will sell bonds to soak up cash and slow down the economy.

If the public wants to stop the creation of new money they have to demand that Congress stop raising the debt limit. That is a truer source of the ‘new money’. An increase in the debt limit means the Treasury creates new bonds, and these are potential new money if the Fed decides to monetize them. Keep the debt limit flat or reduce it and the money supply can’t increase as easily.

[Wyatt's Torch]

if you hear a report from NPR or other mainstream shows, you will hear that the Fed is bond-buying. “They completely leave out the fact that the Fed is creating new money in order to do its bond-buying.

Is there anyone that doesn't know this? This is how liquidity is injected into the system.