Ben is an idiot. No, it's not him.
This is partially true. Instead of printing "money", numbers are keyed into a computer that sends an encrypted data stream connected to another computer at a bank someplace, allowing that computer's accounting program to adjust the balance of available funds on hand for issue.
Those numbers that are keyed into a computer do nothing to increase the money supply - read my previous posts on this thread. Also, do a search for - and read - the Fed's H.4.1 report The Primary Dealers are sitting on the electronic funds generated from the Treasury purchases. Now if they took those funds and began issuing loans agains them then I would agree - big problem. That's not what they're after though. They want deflation - where existing debt is harder to pay off, instead of inflation - where existing debt becomes much easier to pay off.
What are the assets these funds were issued against? Worthless government securities, themselves issued against previously issued worthless government securities never be repaid?
The Fed's H.4.1 report shows that the assets those funds were issued against are primarily US Treasury securities - along with MBS securities - and recently some foreign bonds, so that Western Europe doesn't implode too quickly into deflation. The banks want Europe there, just not through an uncontrolled crash.
US government securities are not worthless at all. They are a promise against your future labor - and the future labor of the rest of us. They are only as worthless as the result of your upcoming labor. :-) There are a lot of US Treasuries auctioned to roll over existing debt that is maturing. However, most of these securities are held by Primary Dealers (largest banks), and not the Fed.
Do the loans the Fed has made above meet that criteria? Has there ever been a fiat currency in the history of mankind that did not eventually become worthless? Look at this chart below of how much the dollar has depreciated since the Fed was formed at a secret meeting on Jekyll Island.
All loans are against the future labor of the entity signing the promissory note (or the future labor of others that the signee may control). Loans create economic slaves. That's why are debt-based monetary supply is so evil. It only exists through economic slavery (much of it done willingly - some implicitly, like US Treasuries).
A debt-based monetary supply must - necessarily - operate through the concept of gradual monetary inflation. Otherwise, monetary deflation can occur which will more quickly collapse a nation. Monetary inflation works on an exponential curve, so there will always come a point where the "knee" of the curve is hit - and the very real issue of hyperinflation becomes evident. That's why the large banks that control the economies of the world (through the central banks) will periodically crash debt creation. They typically do it after a short period of massive new debt creation (like the roaring 20's, and the early 2000's). This makes it so that they can grab the underlying assets when large numbers of entities go bankrupt - and then resell at a later time for large profit.
The world bankers are currently crashing debt. They are also creating instability in many regions of the world - which I believe will lead to war - which the bankers will fund both sides of (just as in previous wars in modern history).
After the world money supply has been sufficiently crashed (due to the debt exponential curve) , then things will start over - with gradual inflation and continued debt slaves...
"Fiat" currency is not evil. It has been used quite successfully in many parts of history. Look up "tally sticks" that were used in England prior to debt-based money being forced on them by William and Mary in the 1590's.
The important facet of "money" isn't that it be gold and/or silver. It's that "money" should only be created through labor that has been completed - not created through the promise of future labor. The large banks have forced the "Wimpy" economy on everyone - "I will gladly pay you tomorrow for the hamburger that I eat today."
No - I am not Ben. I passionately hate debt-base money...
The gold market is extremely small compared to others. Maybe 5 billion or so. In a deflationary panic money can rush into it and send gold into orbit...DESPITE the deflation you are talking about. When people fear bank runs (on bullshit digitally notated US dollars) and defaults then gold is a safe haven. Perhaps not as good as FRNs or Euros under your mattress but in that league