RATE Group | Fed’s Hidden QE Becomes Norm; Bitcoin to the Rescue
65167
wp-singular,post-template-default,single,single-post,postid-65167,single-format-standard,wp-theme-bridge,wp-child-theme-bridge-child,ajax_fade,page_not_loaded,,qode_grid_1300,side_area_uncovered_from_content,footer_responsive_adv,qode-content-sidebar-responsive,qode-child-theme-ver-1.0.0,qode-theme-ver-13.3,qode-theme-bridge,wpb-js-composer js-comp-ver-7.9,vc_responsive
 

Fed’s Hidden QE Becomes Norm; Bitcoin to the Rescue

13 Oct Fed’s Hidden QE Becomes Norm; Bitcoin to the Rescue

Posted at 02:25h in Bitcoin News by

[ad_1]

Yesterday, the Federal Reserve (Fed) said it would restart buying bonds in the open market. Also, it will continue its overnight funding operations until January of next year.

Fed’s Cash Injection Is Already Routine

For the Fed, pouring cash into the markets is already routine. It seems that policymakers are trying to convince the public that there is nothing wrong with their easing measures. However, what we get is cheaper money that devalues at an even faster paste.

Last month, the M2 monetary supply exceeded the $15 trillion mark.

Elsewhere, the M1 money supply – a narrower definition of money that includes its most liquid form – is about to touch the $4 trillion mark soon.

For former congressman Ron Paul, the Fed’s intervention in the market is a form of monetary socialism, as the central bank is trying to plan the value of money through manipulations rather than letting the markets decide it.

On Friday, the Fed announced it would start purchasing about $60 billion in…

[ad_2]

Source link