>>61296223
> It did lead to inflation but the demand for dollars was still there because the debt was still low enough, the US economy was more sound than it is today.
Literally wrong though, pic related shows how QE2 and 3 happened during one of the lowest points in CPI history that wasn’t during a recession.

>But the holders of dollars today and more important future dollars wont hold them without being compensated for inflation anymore.
You’re just describing how bond pricing works, which is again why I’m making fun of you for selling the bottom of bonds.

>First, the people buying debt were producers in the USA and abroad. Somebody in 1980 who invested $1,000,000 in China and is worth $400,000,000 today, is able to buy bonds and send stuff to the USA in exchange for the IOU. That's how America works now.
As compared to
Yeah no shit that’s what happens when your money is more attractive than your industry. No real revelation here, I already mentioned we do that Ala Europe and 2008.

>Foreigners can also purchase bonds and they did. They arent anymore.
People are selling US bonds.
But this has nothing to do with the creditworthiness or outlook for US bonds, and everything to do with the appetite from foreign investors for U.S. securities. QE looks pretty fucking bullish when you realize it’s the U.S. gov buying its own dip and the bears are failing European and Asian markets.

>QE is the Fed buying bonds. It's the creation of dollars out of thin air without being borrowed into existence first.
The system was already kind of fucked but QE made it just too insane.
And this is different than reserve creation prior to 2008 how? The Fed exchanging long term bonds for reserves is how reserves were created prior to QE as well so it seems you don’t understand