"Andy F." <never.mind@[EMAIL PROTECTED]
> wrote in message
news:63sn1bF28pmi6U1@[EMAIL PROTECTED]
>
> "Werner" <whetzner@[EMAIL PROTECTED]
> wrote in message
>
news:f6fef69f-edbc-4903-b076-a27dea3d1a8a@[EMAIL PROTECTED]
> On Mar 12, 11:43 am, "Andy F." <never.m...@[EMAIL PROTECTED]
> wrote:
> ...
>>
>> That's almost true - apart from the bit about printing money and
>> hyperinflation.What the Fed are actually doing is exchanging Treasury
>> bonds
>> for mortgage- backed securities.This doesn't effect the money supply.
>>
>
>
>>You will have to explain how Treasury bonds are not money or like
>>money and why the price of oil and gold are going up, if not because
>>the Fed is making money.
>
> Treasury bonds aren't money because you can't spend them.Same reason why
> the mortgage backed securities they're being exchanged for aren't money.
>
>
They are permanent money, since in Fed's possession treasuries are the
instrument by which money supply is reduced. So, by doing such exchange,
Fed
causes a large ****tion of that 200bn to become permanent money supply, as
if
they were printed anew. Bad enough.
e.
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