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| Joined: | Mon Nov 21st, 2005 |
| Location: | California USA |
| Posts: | 6399 |
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Technically, the FED is not printing money – currency – but that response is deliberately deceptive. The M1 money supply has not changed in any significant way. Over the last year, the monetary base also did not change. The FED says it will increase the purchase of T-bonds by $600 billion. Where will it get the money to do this? Not a printing press, but its functional equivalent: the legal right to create digits in a computer. If this is not the functional equivalent of a printing press, then where will the FED get the money to buy all that debt?