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To: GourmetDan
The Federal Reserve is creating 'money' out of thin-air any time they buy debt or assets of any kind.

Not when they roll over maturing debt. Or, in this case, reinvest principal and interest received on MBS.

97 posted on 08/10/2010 3:39:06 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot
"Not when they roll over maturing debt. Or, in this case, reinvest principal and interest received on MBS."

As I showed with the accounting entries. When the Fed receives cash, that terminates the original entry that created that cash. Once cash reaches the Fed, it has disappeared from the economy. When the Fed re-enters the market, that is new cash created by the Fed with an accounting entry.

162 posted on 08/11/2010 5:22:05 AM PDT by GourmetDan (Eccl 10:2 - The heart of the wise inclines to the right, but the heart of the fool to the left.)
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