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To: 2MAR$ who wrote (86494)1/27/2012 10:47:08 AM
From: studdog  Respond to of 217910
 
You can print money electronically or with a printing press. but that still is not what the central banks are doing.
The Bernanke electronic helicopter equivalent would be if all of a sudden $1000 appeared in everyone's bank account without any debt being created on the other side. That is true money printing. Again, what the fed is doing is expanding it's balance sheet, but it is still a "balance" sheet. with debt on the other side. This of course can be inflationary, but it is a whole lot easier for them to reduce the money supply with this mechanism than if they just "printed" money, either electronically or with a printing press. I don't pretend to understand all the implications of what the central banks are doing, but be suspicious if someone bases their whole argument on the Fed or the central banks just "printing money".

SD