3min chapter

Tom Bilyeu's Impact Theory cover image

How To Prepare For The GLOBAL RECESSION & Build Wealth In The Process! | Raoul Pal

Tom Bilyeu's Impact Theory

CHAPTER

Is the Fed Taking Money Out?

When they do quantitative tightening, they take money out. And then it takes money out or they're just not going to put as much in. The idea is it pushes up wages or all the banks have to buy these bonds now from the government. So then they buy these bonds and they've got less money left to lend and do other activities with. There are mechanisms by which they're essentially forced to buy the bonds. But if you don't have much money because you're feeling a bit tight yourself, you'll pay a lower rate. It's basically as simple as that.

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