[Tublecane]

“The Fed has nearly $480 billion in Treasury securities.

‘Do they realize that the Fed conjures it out of thin air?’

They could. They don’t have to.”

This is what I’ve always wondered: what does the Fed use to buy its securities? Does it use the gold it confiscated from the public way back when? If so, wouldn’t suddenly reintroducing the equivalent of some portion of that gold back into the economy through AIG lead to inflation anyway?

[Toddsterpatriot]

This is what I’ve always wondered: what does the Fed use to buy its securities?

Newly created money.

Does it use the gold it confiscated from the public way back when?

No.

[Petronski]

...what does the Fed use to buy its securities?

Federal Reserve Notes