Anonymous
ID: 0qG6g5Vw
8/9/2025, 7:14:13 PM No.60763540
I'm just now starting to understand what QE means and for every other low IQ person on this board confused by what it means I'm going to break it down in the way that I've understood it so far and to make it easily digestible.
QE IS: feds buying government bonds through third parties in which the bonds themselves are affected by market conditions
QE is NOT: feds buying government bonds directly from the treasury, which is what most people refer to ''monetizing debt'' (CRUCIAL: THIS IS A HUGE DIFFERENTIATOR AND IMPORTANT TO UNDERSTAND THAT THIS IS LITERALLY ILLEGAL AND DOES NOT HAPPEN)
>the feds do not monetize debt
>the feds don't actually ''print money'', most of the additional reserves made through these decisions are literally all digital money that aren't even printed into actual paper
>the fed's main intent is not to fund government spending or any other similar type of fiscal policies
>the fed's main intent IS, however, to stimulate the economy and inject money into the economy once THEY THEMSELVES DECIDE it is necessary
>the fed's main priority and the entire reason behind it being separate from the government is mainly due to the fact that the government could in theory use the fed's reserves to finance their debt, which is something they want to avoid
I'll give it 3 years until I fully understand exactly what it means, but I'm starting to get the basic gist of it right now and I hope I cleared some things up for other low IQ /biz/lets such as myself confused by it.
QE IS: feds buying government bonds through third parties in which the bonds themselves are affected by market conditions
QE is NOT: feds buying government bonds directly from the treasury, which is what most people refer to ''monetizing debt'' (CRUCIAL: THIS IS A HUGE DIFFERENTIATOR AND IMPORTANT TO UNDERSTAND THAT THIS IS LITERALLY ILLEGAL AND DOES NOT HAPPEN)
>the feds do not monetize debt
>the feds don't actually ''print money'', most of the additional reserves made through these decisions are literally all digital money that aren't even printed into actual paper
>the fed's main intent is not to fund government spending or any other similar type of fiscal policies
>the fed's main intent IS, however, to stimulate the economy and inject money into the economy once THEY THEMSELVES DECIDE it is necessary
>the fed's main priority and the entire reason behind it being separate from the government is mainly due to the fact that the government could in theory use the fed's reserves to finance their debt, which is something they want to avoid
I'll give it 3 years until I fully understand exactly what it means, but I'm starting to get the basic gist of it right now and I hope I cleared some things up for other low IQ /biz/lets such as myself confused by it.
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