DISQUS

oc bear · 1 year ago

I know one group that's been forced to lend. Taxpayers.
w · 1 year ago

The Fed doesn't "spend" the money it lends out. And it doesn't "finance" it. It prints it. (Well, they did sell quite a lot of treasuries, but are now lending out far, far more.)

The author knows this as he says "Ordinarily, an increase in the money supply of this magnitude would be highly inflationary". If the Fed were borrowing the money it would be no increase of the money supply.

The Fed printing money to fight deflation should be no surprise to anyone who knows how "Helicopter Ben" got his nickname.