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Tenchu

08/09/11 6:40 PM

#103536 RE: Windsock #103535

Windsock,

Elmer is not correct about his "printing money" explanation and is just distributing some of his ideological talking points.



Didn't we discuss this before?

Essentially the Fed is indeed "printing money." They bought bonds with money that materialized out of thin air.

Tenchu
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Elmer Phud

08/09/11 7:53 PM

#103544 RE: Windsock #103535

Elmer is not correct about his "printing money" explanation and is just distributing some of his ideological talking points. Of course one dare not identify the source of the misguided theories because that would be partisan and forbidden.

The Federal Reserve can not print money. The Federal Reserve can expand the money supply by buying bonds as you point out and that is called Quantitative easing.

And where does the money come from to buy those bonds? I am not presenting an ideology, I am offering what I hear from numerous financial experts with most impressive credentials. You put me in an awkward position. Should I believe them or you who presents nothing?

That's a tough one...