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What Money Printing Looks Like …

We all know that the Federal Reserve – America’s secretive central bank – is printing trillions of dollars worth of new “assets” in an effort to stimulate an economic recovery in America. This process – known as “quantitative easing” (or “pump priming”) – hasn’t worked. Sure it has sent the…

We all know that the Federal Reserve – America’s secretive central bank – is printing trillions of dollars worth of new “assets” in an effort to stimulate an economic recovery in America.

This process – known as “quantitative easing” (or “pump priming”) – hasn’t worked. Sure it has sent the U.S. stock market soaring to record heights, but for the rest of us it has done nothing but devalue the two nickels we’re working so hard to rub together.

The first round of quantitative easing, known as “QE1,” took place from November 25, 2008 through March 31, 2010. Over that period, the Federal Reserve added $1.7 trillion to its balance sheet ($300 billion in Treasuries, $1.2 trillion in mortgage backed securities and $175 billion in agency bonds). The second round, dubbed “QE2,” took place from November 3, 2010 through July 1, 2011.  Over that period, the Fed added $600 billion in Treasuries to its balance sheet.

Another so-called stimulus plan that offset longer term securities with the sale of short-term debt (a.k.a. “Operation Twist”) began in September 2011 – and was extended in June of last year.

Last September, the Fed unveiled “QE3” – an open-ended addition of nearly $85 billion in new asset creation (a.k.a. money printing) each month.

The results? As of last week, the Federal Reserve’s balance sheet now stands at a record $3.646 trillion – an increase of $813 billion (30 percent) over the last year. Of course the American economy remains decidedly “unstimulated.”

Something consumers are beginning to figure out …

 

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24 comments

Comrade1917 August 16, 2013 at 12:16 pm

Dollar collapse is forthcoming.

Reply
CNSYD August 16, 2013 at 1:27 pm

Just so you won’t be stuck with all that useless paper, you can transfer it to me.

Reply
TontoBubbaGoldstein August 16, 2013 at 6:08 pm

Dude, TBG mails you 20 C-notes every Monday, Wednesday, and Friday (Except for USPS holidays.) I just stuff ’em in an envelope and mail ’em to CNSYD, USA. Been doin’ it for years…

On an unrelated note, I am now a “Triple Platinum Lifetime member” of the Dyslexic Crosby,Stills,Nash and Young Fan Club…

Reply
CNSYD August 17, 2013 at 9:10 pm

Your mail has been received. Problem is that your C notes all have Sic Willie’s picture on them. Only use I have found for them is as roach repellants.

Reply
Frank Pytel August 18, 2013 at 11:25 am

That will be reversed shortly should the feds course continue.

Comrade1917 August 16, 2013 at 12:16 pm

Dollar collapse is forthcoming.

Reply
CNSYD August 16, 2013 at 1:27 pm

Just so you won’t be stuck with all that useless paper, you can transfer it to me.

Reply
TontoBubbaGoldstein August 16, 2013 at 6:08 pm

Dude, TBG mails you 20 C-notes every Monday, Wednesday, and Friday (Except for USPS holidays.) I just stuff ’em in an envelope and mail ’em to CNSYD, USA. Been doin’ it for years…

On an unrelated note, I am now a “Triple Platinum Lifetime member” of the Dyslexic Crosby,Stills,Nash and Young Fan Club…

Reply
CNSYD August 17, 2013 at 9:10 pm

Your mail has been received. Problem is that your C notes all have Sic Willie’s picture on them. Only use I have found for them is as roach repellants.

Reply
Frank Pytel August 18, 2013 at 11:25 am

That will be reversed shortly should the feds course continue.

Centrist View August 16, 2013 at 12:37 pm

The Fed does not print money. The Bureau of Engraving and Printing does.

http://www.moneyfactory.gov/
The mission of the Bureau of Engraving and Printing (BEP) is to develop and
produce United States currency notes, trusted worldwide. As
its primary function, the BEP prints billions of dollars – referred to
as Federal Reserve Notes – each year for delivery to the Federal Reserve System. The
Federal Reserve operates as the nation’s central bank and serves to
ensure that adequate amounts of currency and coin are in circulation.
The BEP does not produce coins – all U.S. coinage is minted by the United States Mint.

Reply
Smirks August 16, 2013 at 12:57 pm

Yes, the BEP -literally- prints the money, but the Federal Reserve can expand the money supply without actually printing bills and stamping coins. According to the Federal Reserve website, only $1.2 trillion in currency is actually in circulation.

http://www.federalreserve.gov/faqs/currency_12773.htm

Reply
Centrist View August 16, 2013 at 1:52 pm

Maybe it’s better to say that the Fed ‘conjures’ money.

http://www.thefreedictionary.com/conjure

Conjure – verb
To summon (a devil or spirit) by magical or supernatural power.

Reply
Frank Pytel August 16, 2013 at 1:04 pm

Smirks is correct. Printing doesn’t necessarily actually involve printing any more. You print to pdf as an example.

Reply
Centrist View August 16, 2013 at 12:37 pm

The Fed does not print money. The Bureau of Engraving and Printing does.

http://www.moneyfactory.gov/
The mission of the Bureau of Engraving and Printing (BEP) is to develop and
produce United States currency notes, trusted worldwide. As
its primary function, the BEP prints billions of dollars – referred to
as Federal Reserve Notes – each year for delivery to the Federal Reserve System. The
Federal Reserve operates as the nation’s central bank and serves to
ensure that adequate amounts of currency and coin are in circulation.
The BEP does not produce coins – all U.S. coinage is minted by the United States Mint.

Reply
Smirks August 16, 2013 at 12:57 pm

Yes, the BEP -literally- prints the money, but the Federal Reserve can expand the money supply without actually printing bills and stamping coins. According to the Federal Reserve website, only $1.2 trillion in currency is actually in circulation.

http://www.federalreserve.gov/faqs/currency_12773.htm

Reply
Centrist View August 16, 2013 at 1:52 pm

Maybe it’s better to say that the Fed ‘conjures’ money.

http://www.thefreedictionary.com/conjure

Conjure – verb
To summon (a devil or spirit) by magical or supernatural power.

Reply
Frank Pytel August 16, 2013 at 1:04 pm

Smirks is correct. Printing doesn’t necessarily actually involve printing any more. You print to pdf as an example.

Reply
TontoBubbaGoldstein August 16, 2013 at 1:24 pm Reply
TontoBubbaGoldstein August 16, 2013 at 1:24 pm Reply
lawzoo August 16, 2013 at 1:31 pm

Sounds good to me ! Small bills please.

Reply
lawzoo August 16, 2013 at 1:31 pm

Sounds good to me ! Small bills please.

Reply
? August 16, 2013 at 10:11 pm

Stagflation coming at the least and a good chance for a crash in Sept./Oct. range in the stock market.

M2 growth is actually dropping, if ABCT has merit then the structure built by the ongoing money printing can’t be supported as the growth shrinks….causing pops, busts, etc.

http://www.economicpolicyjournal.com/2013/08/is-slowing-money-supply-signalling.html

The only thing that will temporarily cap the bust would be an announcement of stepped up QE…which of course further debases the money.

Reply
? August 16, 2013 at 10:11 pm

Stagflation coming at the least and a good chance for a crash in Sept./Oct. range in the stock market.

M2 growth is actually dropping, if ABCT has merit then the structure built by the ongoing money printing can’t be supported as the growth shrinks….causing pops, busts, etc.

http://www.economicpolicyjournal.com/2013/08/is-slowing-money-supply-signalling.html

The only thing that will temporarily cap the bust would be an announcement of stepped up QE…which of course further debases the money.

Reply

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