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QE money goes straight to the banks. https://en.wikipedia.org/wiki/Quantitative_easing https://en.wikipedia.org/wiki/Quantitative_easing > A central bank enact
by do_not_redeem 2y ago
QE money goes straight to the banks. https://en.wikipedia.org/wiki/Quantitative_easing https://en.wikipedia.org/wiki/Quantitative_easing
> A central bank enacts quantitative easing by purchasing, regardless of interest rates, a predetermined quantity of bonds or other financial assets on financial markets from private financial institutions.[12][13] This action increases the excess reserves that banks hold. The goal of this policy is to ease financial conditions, increase market liquidity, and encourage private bank lending.
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> I don't understand how you simultaneously believe that the government prints money, but doesn't fund government expenses with printed money. Do they just print money to devalue savings and spite you?
"The government" is not a monolithic entity. Money printing is monetary policy. Taxes and social services are fiscal policy. I think you are mixing those two things up.
The arm of the government that prints money is not doing it to spite the citizens (Hanlon's razor). They're doing to maximize employment, stabilize prices, and moderate long-term interest rates[1]. Funding schools is not part of those goals. That happens elsewhere in government, far away from the money printers.
[1]: https://www.law.cornell.edu/uscode/text/12/225a https://www.law.cornell.edu/uscode/text/12/225a