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Cullen Roche, Discipline Funds - QE Is Not As Powerful As A Lot Of People Like To Think It Is | #378

The Meb Faber Show - Better Investing

CHAPTER

What Does Quantitative Easing Really Mean?

Quantitative easing is the idea of printing money to buy bonds. But it actually creates a 'swamp' of financial assets that are then given back to the treasury, reducing private sector's net income. The fed doesn't really have or not have any money in the first place - they just expand their own balance sheet and create deposits through the banking system. This results in an asset swamp which leads to deflationary behaviour.

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