[AnimalMuppet]

> It reduces their cash savings by the ratio of the amount of new money injected to the total supply

No. That is, it can, but it doesn't have to. Their cash savings are only affected if the value of money changes, not if the quantity of money changes. The Fed's mandate is for stable value, not stable quantity.

And if you're going to ask what the difference is: Velocity. There may be other things as well, but definitely velocity.

But even my argument here isn't needed to defend QE. QE injected 4 trillion dollars into the US economy. Why did the Fed do that? Because $4 trillion had just evaporated in the meltdown of 2008. That wasn't even changing the quantity of money, it was trying to prevent a change in the quantity of money.