> By March 2009, it held $1.75 trillion of bank debt, mortgage-backed securities, and Treasury notes; this amount reached a peak of $2.1 trillion in June 2010.
That feels like a lot of liquidity to me.
Liquidity expansion through loans and purchase of credit and equity instruments simply isn't very inflationary. It can only cause real price inflation if the money starts chasing a shortage of real goods and services - which are currently being dramatically underproduced. If it does start causing inflation, the Fed can and will simply raise interest rates from their current near-zero level. Or fiscal policy can be used.
Yes, quantitative easing is okay. But that is a lot different than the direct money being given to individuals and businesses by Congress. Especially the direct payments to individuals means printing money.
What the fed is doing is printing money now that will be destroyed later, or held in reserve. Either way, it is backed by actual financial instruments (whatever equity or bonds or notes they're buying).
> By March 2009, it held $1.75 trillion of bank debt, mortgage-backed securities, and Treasury notes; this amount reached a peak of $2.1 trillion in June 2010.
That feels like a lot of liquidity to me.
Liquidity expansion through loans and purchase of credit and equity instruments simply isn't very inflationary. It can only cause real price inflation if the money starts chasing a shortage of real goods and services - which are currently being dramatically underproduced. If it does start causing inflation, the Fed can and will simply raise interest rates from their current near-zero level. Or fiscal policy can be used.
Venezuela is under sanctions which are intended to exacerbate the situation. https://en.wikipedia.org/wiki/International_sanctions_during...