Did you all know that since 2008, 25% of the US treasury bonds have been purchased by the federal reserve, through contracts?
This means that since 2008, 25% of our economy has been generated through printing money (point of purchase contracts for us treasury bonds). The Feds buy Treasury bonds by creating bank reserves, which are credited to the banks' accounts at the Fed.
This process increases the money supply because it creates additional reserve balances at the banks, which can then support more lending and economic activity.
Quote:
(2008-2010): In response to the financial crisis of 2008, the Fed launched its first round of QE, purchasing about $1.75 trillion in government bonds and mortgage-backed securities.
(2010-2011): The Fed announced it would purchase an additional $600 billion in U.S. Treasury securities.
(2012-2014): This phase was open-ended and resulted in approximately $1.6 trillion in purchases by the end of 2014.
(2021-2022): The Fed's balance sheet expanded dramatically from about $4 trillion at the start of 2020 to over $8 trillion by mid-2021 due to purchases of U.S. Treasury and mortgage-backed securities.
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Now before we make this a left vs right thing, lets not ignore that all of these happened during THE SAME GUY's administration. Im not blaming him.. but let's not even try to blame anyone.
Let's instead just accept the fact, that since the housing crash, we've lived in a fake economy.
Is it going to last? I don't think so.