Fed operations. There are none today.
Don't you understand what "Temporary" is?
The oxygen tube was MBS monetization by the Fed,
FED's purchases don't "monetize" anything. You're talking out of your hat. You've gotten these terms from amateurs who also talk through their many hats. When FED purchased the MBS it went on FED's balance sheet. Nothing to do with the banking system. Nothing to with the rest of us. In time FED will merely resell those securities and make a tidy profit for the Treasury.
This is a huge operation, with far greater effect on the monetary base than anything done in the 1930-s.
It had no effect on the base. All you needed to do was look at he base. It shows no change commensurate to quantity of MBS purchased.
The base tripled.
Go to US financial data. Under monetary base you'll see that the base has risen about $300 billion over the last year. Then check on the next page, adjusted reserves, that it has risen about $300 billion over the last year. This was due to FED's purchase of Permanent, coupon passes, and now it is sloshing around in bank vaults with no place to go. Nothing to do with MBS.
Next, go to Federal Reserve Assets page, which represents FED's own balance sheet. On it, you'll find the disposition of those assets, and in particular, "operations focused on long term conditions". There's where your MBS reside. Finally, you can go to the next page and note that the source base has been flat. FED has created NO MONEY. You can check THAT by the M2 page. Who created the small net increase in M2? The private sector banking system.
Yes, reserves were not borrowed, in part they went to prop
desks.
Completely false. I'm done with you. it's clear you're what i said in the first place. i gave you a chance to show you've taken beginning finance, but all you showed is that you don't know a thing. Why not learn the subject before you shoot off your yap? |
