7 trillions dollars!

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andy2

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Joined 2004
#1
That is how much in the Fed balance sheet. I would think at some point it will matters. I suppose it already matters since people are paying more for everything. It's unprecedented in modern time. I don't think anyone really know how through which mechanism can the FED unwind its massive balance sheet. It is a bubble. Can the FED keep printing? Nobody really knows.
 
#3
It's $3 trillion over ten years. Why not talk about a “$300 billion/year infrastructure bill”? It is a lot of money, no doubt, but the prevailing framing is to compare $3 trillion with $300 billion. What a load of ********.
Of course what’s happening is that someone decided to frame up the infrastructure bill as “too expensive” and bulked it up to ten years as though it’s a lump sum rather than an annualized sum. The word for that is “lying with statistics.”
Why not frame some other things that way? The DoD budget, for the next ten years, is $8 trillion. And, since the intelligence community is, for all intents and purposes, part of the DoD, let’s add that in and call the DoD budget a cool “$10 trillion” That framing smells pretty bad, doesn’t it? People are whining at a measly $300 billion/year but their representatives happily write checks with a flourish to the tune of $1 trillion/year.
 
#7
dogecoin.jpg
 
#10
andy2 said:
That is how much in the Fed balance sheet. I would think at some point it will matters. I suppose it already matters since people are paying more for everything. It's unprecedented in modern time. I don't think anyone really know how through which mechanism can the FED unwind its massive balance sheet. It is a bubble. Can the FED keep printing? Nobody really knows.
Click to expand...
Here:

Coronavirus and the economy: How the Fed is 'printing' dollars
US is `printing' money to help save the economy from the COVID-19 crisis, but some wonder how far it can go
The Federal Reserve is creating dollars from scratch at an unprecedented rate, one of many tools to rescue the economy amid the coronavirus pandemic.
Brent Schrotenboer, USA TODAY
Published 6:01 AM ART May. 12, 2020 Updated 6:45 PM ART May. 13, 2020
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A couple details:

1) it´s not a cheesy "you tube video" or "an Instagram post" or whatever but a serious Newspaper, quoting official data.

2) it´s not even "breaking News" but an article from May 2020!!!!
If anything, this is getting worse, not better.

Some interesting points, specially they are not PRINTING paper money, no need to, everything is plastic/electronic money now, Banks simply lend money to end users (you and me) and the Feds back those banks.

With a few strokes on a computer, the Federal Reserve can create dollars out of nothing, virtually "printing" money and injecting it into the commercial banking system, much like an electronic deposit. By the end of the year, the Fed is projected to have purchased $3.5 trillion in government securities with these newly created dollars,

“The way you and I have checking accounts in our banks, that’s how all these other banks have accounts at the Fed,” said Pavlina Tcherneva, an economist at Bard College in New York. “All the Fed does is literally credit them. They just type it in.”

The Fed's goal: to keep markets functioning after they had seized up in fear. The strategy also makes credit easier to obtain, with a bigger money supply and lower interest rates. Without these and the Fed's other emergency measures, the economy would have crashed already, experts say.

But an unstated, practical result of the Fed's bond purchases is that it creates money to finance the gigantic debt run up by Congress. The very idea of it tends to explode the heads of those who say dollars should come from work, savings and investment instead of thin air.

The Federal Reserve doesn’t literally print paper dollars. That’s the job of the U.S. Treasury, which also collects taxes and issues debt at the direction of Congress. At this time of crisis, the Fed instead makes large asset purchases on the open market by adding newly created electronic dollars to the reserves of banks such as Wells Fargo, Goldman Sachs and Morgan Stanley.

In exchange, the Fed receives large amounts of bonds – U.S. Treasury securities and agency securities that are backed by bundles of home mortgages.
Click to expand...
read it again: they are backing all this "Financial Magic" with home mortgages, which they HOPE People will eventually pay in full, at high interest rates (hey, the Banks need to EARN something for their efforts) and not failing or defaulting on them.
Think of 2008 and you can imagine how this can end.

No Magic, conspiracies, secret knowledge, nothing weird needed to explain this, just Economy 101
 
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