[29_29]

I was talking about the two levers the Fed has to guide the economy at work - Printing Money and Lowering interest rates (as described by Ray Dalio https://youtu.be/PHe0bXAIuk0). My coworker starry eyed, looked at me and said, "What about Quantitative Easing?". I responded that is printing money. I think the issue is, these concepts are given difficult sounding names, so people do not question their ethics. I'm not saying they are not needed - in a credit based economy it seems they are absolutely necessary, but perhaps they could be implemented in a way that doesn't so favor the rich.

[mars4rp]

Yes, print money and pay for student loans!

[Fjolsvith]

Yes! Because we can postpone that bill to our future tax payers.

[mars4rp]

What bill? Printing money is not a bill

[Fjolsvith]

The student loans are.

[michalu]

Except that "Quantitative Easing" is NOT "printing money"... it's just media who dubbed it "printing money" as it is a more clickbaity term that works better for driving traffic to the advertisement infested pages.

[29_29]

Quantitative Easing could not exist without creating money. Its literally the Fed creating money to buy bonds to reduce interest rates.

[29_29]

https://www.investopedia.com/terms/q/quantitative-easing.asp

> Quantitative easing is an unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to increase the money supply

[LegitShady]

Just so we're clear, he's not entirely wrong.

When the central bank 'buys' securities, they do so with money they're creating in that purchase. In effect they're dumping new money into wherever they're buying securities from, but the 'dumping' isn't with dump trucks or dropping it from planes.

Now those bonds come due and the money is supposed to leave the system, but until then the velocity of money means there are knock on effects.

[RhodesianHunter]

When you put money into the market, but take bonds (which are a guaranteed future cash flow) out you are injecting liquidity temporarily, effectively trading current cash for more future cash.

It's not the same thing as printing money and spending it and suggesting otherwise is either disingenuous or ignorant.

[grandridge]

It is exactly printing money, just the amounts are so large they just skip the paper and ink

[RhodesianHunter]

When you put money into the market, but take bonds (which are a guaranteed future cash flow) out you are injecting liquidity temporarily, effectively trading current cash for more future cash.

It's not the same thing as printing money and spending it and suggesting otherwise is either disingenuous or ignorant.

[geggam]

And it's easier to move around, for a fee.

Think of this business opportunity.

Start a company where you imagine wealth into existence then loan it to others. Then you setup partner systems where you charge folks who use that wealth. A charge for each transaction.

Zero overhead with a profit layer...