Posted on 03/19/2020 10:04:16 AM PDT by C19fan
The Federal Reserve will be buying $75 billion in Treasurys on Thursday and Friday as the central bank continues its efforts to keep markets flowing smoothly amid the coronavirus crisis. In the latest in a frenzied series of developments, the New York Fed laid out a schedule for buying it will undertake across a series of maturities.
In all, the purchases will total $75 billion, an acceleration from the $40 billion total the Fed had originally set when it announced its latest operations to expand its balance sheet.
(Excerpt) Read more at cnbc.com ...
So where did the Fed get their $75 billion?
Oh yeah, it was created out of NOTHING.
Thanks Woodrow Wilson.
I don’t know much about this stuff. Seems to me like the government is buying it’s own “product”. I don’t see how this will help anyone except the big investment banks...
.
What...did the Chinese lose their appetite for our debt? Give them Hawaii, California and some L4 labs to settle up. /s
It’s called “monetizing the debt”. The Government issues debt, and the “semi-autonomous” Fed buys it, creating money out of debt. It’s like magic.
“THE FED” is not our federal government, but a privately owned FED
You are correct.
When it happened under Obama I thought inflation would result...but most of it stayed in the banks reserves (or their stock market investments) rather than going to the population at large.
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