When the Fed makes the call: How the Fed is spending trillions of dollars to keep inflation at historically low levels
By now you’ve heard the headlines about the Fed’s “printing” of $3 trillion worth of new money.
Or maybe you’re not aware of the Fed printing $3 billion worth of $5 trillion dollars worth of “liquid assets” for the purpose of creating a permanent “cash crunch” that can be used to bail out the economy.
Now, let’s be honest here, when you’re hearing the headlines that this $3 Trillion is going to “stimulate the economy” you’re probably thinking “yeah, right, the Fed printed $3B of money to buy our Treasury securities and now we’re going to use this money to prop up the economy.”
The problem is that the Federal Reserve has actually been printing money to create a cash crunch for the past seven years, which has meant that the US economy has been stuck with a cash shortage.
So far this year, the US has received $3.4 trillion in loans from the Federal Open Market Committee (FOMC), which has spent $2.6 trillion on the stimulus, according to the Committee’s own website.
These loans, and the resulting money printing, have been used to prop-up the US stock market, which now has a market value of more than $60 trillion, or $10.4% of the US GDP.
The Fed has pumped up the US dollar, which means the dollar has more purchasing power than it did in December 2015, when the economy contracted for a second consecutive year.
The stock market has fallen by nearly 30% in 2017, and a further 27% this year.
This means that Americans’ purchasing power has fallen at an unprecedented rate in seven years.
The US stock index has fallen more than 70% since the beginning of 2017, according the FOMC.
Meanwhile, US government bonds are falling at a faster pace than any other asset class in history.
For example, in the year that the economy experienced a “recovery” after the financial crisis, the Dow Jones Industrial Average has lost almost 9,000 points, or 22%.
This means the US government has lost more than half its value since the end of the financial recession.
And the stock market is now down more than 60% since June of 2016.
The reason for the US debt crisis is not due to the Fed pumping money into the economy to buy up government debt, which the Fed has been doing since 2009.
Instead, it is due to US government debt.
The total US debt now stands at $19.6tn, with $19tn of US government and corporate debt.
This debt has grown by $5.5tn since 2008, which is the same amount as the size of the entire US economy.
In the first nine months of 2017 alone, the debt increased by $1.2 trillion, and by $2tn since January of 2020.
It is now $31.3 trillion, with more than 50% of it coming from the US Treasury.
And as you can see from the chart below, it’s been going on for decades.
What’s the solution?
In a way, this is a problem that the Fed itself has to address.
When the US Government was created, it was designed to solve the debt problem by printing money, and this money would be used for a number of purposes.
First, it would be backed by US Treasuries and other assets that could be used by the Federal Government to repay the debt.
Second, it could be invested in stocks and other financial instruments that would be issued in the future.
Third, it might be used in the form of “safe-haven” securities that the government could purchase from companies and other institutions.
Finally, the Treasury could also use it as collateral for debt obligations that it has to pay off, like Social Security, Medicare and other programs.
But in order to pay the bills on time, the Federal government had to create more money by printing more money, or by using more of the Treasury’s own debt to fund spending.
The problem with all of these ideas is that they create a debt crisis, because the debt has to be paid back in the market.
But if the US can print money to finance government spending, and create safe-haven securities to pay for it, then the US would be in a much better position to deal with the debt crisis.
In the past, the most effective solution to the debt crunch was to use more of government’s own borrowing capacity.
This is exactly what happened after the Great Depression, which led to a massive stock market crash and the Great Recession.
But the Federal governments response to this problem was to print more money.
This meant that they created more debt to finance spending, which meant that their debt was no longer backed by any of the government’s assets.
It was also used as a “safety-haven,” as Treasury bills were issued to protect themselves against bad debt.
And this “safety” was not backed by anything