Originally posted by longlostbrother
Originally posted by dorkfish87
So print more money to purchase these bonds from the government is what they're doing. Devalue the dollar so people that are actually feeling the economic crises more acutely can now buy less with what little money they have... Seems like a bad idea to me, or their intentions are contrary to what they say.
Yes I'm aware most money is not paper money, but digital. Same rules apply: the more American money they print the less it's worth
A move like this has almost no real impact on average Americans. That's just hyperbolic.
From my earlier link:
Quantitative easing may then be used by the monetary authorities to further stimulate the economy by purchasing assets of longer maturity than only short-term government bonds, and thereby lowering longer-term interest rates further out on the yield curve.
Look, it is all just stupid. It is a fiat currency and the "system" wrapped around it is simply because we have created these "assets" out of thin air to invest in, in order to make another number (interest rates) move because of our belief that doing this or that should have one or the other affect.
In the end money is fake, bonds are fake, stocks are fake, interest is fake and the whole financial system is fake.
So sure, print as much money as you want. It isn't the printing that is breaking the "system", it is the fact that the "system" is fake that is the problem. Basically a big ponzi scheme.