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Bill Fleckenstein: The Bond Market Is Taking Away The Fed's Printing Press

Wealthion - Be Financially Resilient

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The Effects of QE on the Economy

When the Fed does QE it's buying assets directly from banks mostly from the prime of the years. What happens is the Fed injects money into the banking system and then whoever owned the bonds that the Fed bought now has got cash. So QE leaks its way into the economy for sure. It's not necessarily direct bank credit creation which so many people that think that what I just said is wrong believe but it does get in there.

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