So, lets see: the Fed prints $$ (out of thin air), then buys Treasuries to keep the interest rates low. I may be oversimplifying here, but am I wrong? If so, what am I missing?
Buying securities is the usual way that Fed money enters the economy. Usually they buy the securities from a third party, this time looks like the T-bills are going directly from the Government to the Fed in exchange for printed cash.
In an inflation scenario the first person to get the “new” money gets the advantage.
A big middle finger to the chinese and anyone who wants or needs to save with low risk, as this depresses rates on all savings rates everywhere.
Not to mention the dollar collapse risk they’re running.
Hello, I’m hyperinflation. Nice to meet you President Obama...