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<blockquote data-quote="Up In Smoke" data-source="post: 5388849" data-attributes="member: 79702"><p>I think you have it backwards.&nbsp; When the Fed buys bonds, treasuries and securities, they are putting money into the economy.&nbsp; This process is QE.&nbsp; Since 2008, this has been paired with lowering interest rates, which makes money more affordable and stimulates borrowing.&nbsp; When the Fed raises rates and sells it&#039;s positions (most times at a loss) that process is referred to as QT.&nbsp; The Fed has somewhere in the area of 9 trillion dollars of securities on it&#039;s balance sheet and wholeheartedly this month will start the process of selling off it&#039;s positions.&nbsp; I don&#039;t believe the treasury just prints money out of the clear blue sky.&nbsp; If this was true, the value of our dollar would drop significantly.&nbsp; Looking back at previous administrations when &quot;printing money&quot; occurred you see the dollar&#039;s value increase.&nbsp; 1982-1984 when massive spending occurred, 2001-2002, 2016, 2018-2019 and finally 2021-22.&nbsp; The treasury controls the money supply and the Fed controls it&#039;s circulation.</p></blockquote><p></p>

[QUOTE="Up In Smoke, post: 5388849, member: 79702"] I think you have it backwards. When the Fed buys bonds, treasuries and securities, they are putting money into the economy. This process is QE. Since 2008, this has been paired with lowering interest rates, which makes money more affordable and stimulates borrowing. When the Fed raises rates and sells it's positions (most times at a loss) that process is referred to as QT. The Fed has somewhere in the area of 9 trillion dollars of securities on it's balance sheet and wholeheartedly this month will start the process of selling off it's positions. I don't believe the treasury just prints money out of the clear blue sky. If this was true, the value of our dollar would drop significantly. Looking back at previous administrations when "printing money" occurred you see the dollar's value increase. 1982-1984 when massive spending occurred, 2001-2002, 2016, 2018-2019 and finally 2021-22. The treasury controls the money supply and the Fed controls it's circulation. [/QUOTE]

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