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The FED does not loan money. It gives it away. That's what QE is: The Fed buys bonds for more than they're worth on the open market. This disparity creates exce
by phendrenad2 4y ago
The FED does not loan money. It gives it away. That's what QE is: The Fed buys bonds for more than they're worth on the open market. This disparity creates excess money in the system that wasn't there before.
- emkemp 4y ago"The FED does not loan money." This is quite wrong. https://www.federalreserve.gov/monetarypolicy/discountrate.htm https://www.federalreserve.gov/monetarypolicy/discountrate.h... https://www.federalreserve.gov/monetarypolicy/standing-overnight-repurchase-agreement-facility.htm https://www.federalreserve.gov/monetarypolicy/standing-overn... https://www.federalreserve.gov/monetarypolicy/bank-term-funding-program.htm https://www.federalreserve.gov/monetarypolicy/bank-term-fund... In addition, the Fed also borrows money. https://www.federalreserve.gov/monetarypolicy/overnight-reverse-repurchase-agreements.htm https://www.federalreserve.gov/monetarypolicy/overnight-reve...