![]() One of the sources of the new debts was, in fact, running a printing press. Any beliefs that state otherwise, are opinions that are not based on the facts. The Fed borrows the money to spend the money. The objective facts are that the Fed bought $3.7 trillion in new assets by taking out $3.7 trillion in new debts. The debts (liabilities) of the Federal Reserve grew from $3,754 billion to $7,461 billion, which was also an increase of $3,727 billion. The assets of the Federal Reserve grew from $3,773 billion to $7,500 billion, which was an increase of $3,727 billion. ![]() ![]() ![]() The graph below shows the explosive growth in size for the Federal Reserve between August 2019 and February of 2021. Some key chapters from the book and an overview of the series are linked here. This analysis is part of a series of related analyses, which support a book that is in the process of being written. The fact is that money printing is only of four core sources of spending power for the Fed, and it was only the third most important source of funds in 2021.Īs we will explore in this analysis, the numbers show that spending the money in our bank accounts was about six times as important as a source of funds in 2021, than the actual money printing by the Fed. The objective facts can be seen by looking at - and more importantly, actually understanding - the Federal Reserve's balance sheet. There has been a mass illusion of the Fed printing money without limits. ![]() If the markets start to melt down with rising inflation and interest rates, and the markets turn to the Fed for injecting trillions in liquidity - the Fed can't do that unless it can raise the needed trillions of dollars. or European bank or hedge fund, it needs a source for getting the money to do so. If the Fed is going to rescue a major U.S. Of perhaps greater importance for 2022 is that when the Federal Reserve conducts massive market interventions - it needs a source for that new money. It's also vital - because if the Fed is to finance the national debt, it needs to have sources for that money, the Fed doesn't just snap its fingers and will the money into existence. Where the Federal Reserve gets its money is perhaps one of the most misunderstood of all financial topics. ![]()
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