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It's All One Bubble

1 点作者 devops0004 个月前

1 comment

cs7024 个月前
IRL, whenever anyone tells me that the Fed&#x27;s &quot;money printing&quot; is &quot;causing&quot; this or that other thing, I always ask: &quot;OK, tell me how the &#x27;printed money&#x27; ends up in people&#x27;s hands, and why and how it causes bubbles and inflation like you say.&quot; Typically, the response I get is a deer-in-the-headlights blank stare.<p>In fact, the Fed cannot &quot;print money.&quot; Only the US Treasury can, and it must first borrow the money or collect it in taxes. The Fed only buys&#x2F;sells government&#x2F;agency bonds in the open market, lends money to banks <i>when those banks ask for it</i>, and changes short-term rates.<p>To paraphrase H. L. Mencken, all these &quot;money printing&quot; narratives that blame the Fed for some economic malaise are simple, appealing, and wrong.
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