Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (38798)	6/1/2011 10:26:34 AM
From: ggersh	Respond to of 71475

Whatever the assclown is doing, his thesis remains the same, it's a fcuking disaster!-nfg-

To: Real Man who wrote (38798)	6/1/2011 11:07:23 AM
From: rich evans	1 Recommendation Read Replies (1) \| Respond to of 71475

Printing money is called seignorage. It is buying directly from the Treasury. FED is buying from its primary dealers/private parties. It is done electronically and adds to the monetary base of the banks/dealers. The banks/dealers are not using the money to create credit- deposits so it is not getting into the money supply to any great extent. It is like putting the money in a mattress or tin can in your back yard. There are not just customers needing money who qualify for a loan. The potential is there of course but the Fed thinks it can reverse the process and stop any large increase in the money supply. The money multiplier is less then one. I think the main reason the FED is doing this is to control the spread and keep long term rates low. Frankly it would appear that this is no longer needed and therefore I would expect no more QE. JMHO.. Rich