We’ve all heard the term QE or Quantitative Easing. This is the third iteration of easing, jokingly coined as QE-Infinity. It is the demented idea of the Federal Reserve and in particular chairman Ben Bernanke.
For those unfamiliar with QE3, it is a program wherein the Fed purchases $85 billion of government debt; $45 billion in bonds and $40 billion in mortgage-backed securities. In a nutshell, unlike the other two QEs, which were one-time massive influxes of money into the economy, and did no good, QE3 is a scheme that calls for the feds to spend that $85 billion every month. And that’s been happening month in and month out since September 2012.
Wow, the Federal Reserve must have a lot of money. Well, it doesn’t, and it doesn’t have to. None of this is real. That’s not quite accurate, but it’s close.
The Fed, in fact has no money. What it does have is a printing press. When it needs another $85 billion, it simply cranks up the press. It’s not magic . . . It’s counterfeiting.
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