>>Further, the purchase are done with US Fed reserves, which are not "real" money as they do not enter the economy and simply sit in the accounts that instituti

>>Further, the purchase are done with US Fed reserves, which are not "real" money as they do not enter the economy and simply sit in the accounts that institutions have at the Fed. I am really tried of this lie being repeated over and over again, the money enters the economy at the point in which the Federal Government spends the money it gets from selling the debt. The Federal Reserve can not buy US Debt and claim that money never enters the economy because the US FEDERAL GOVERNMENT SPENDS THE MONEY. Sure the Fed itself does not spend it, but just because it it 2 or 3 transactions removed does not change the fact that the money did enter the economy Also the fact that the fed buys up the debt from "the public" is a bit of hand wave as well, knowing the fed will buy up any debt they obtain from the treasury these straw purchasers use this assurance to eliminate their risk and further fleece the public, if the fed stopped buying up this debt as soon as it was sold to the "public" the public would stop buying it.