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<blockquote data-quote="vantexan" data-source="post: 5386392" data-attributes="member: 24302"><p>You&#039;re saying that the money comes entirely from selling debt instruments.&nbsp; What happens if bonds and treasuries aren&#039;t sold in sufficient amounts to cover government spending?&nbsp; The Fed buys them.&nbsp; That&#039;s where the &quot;printing&quot; occurs.&nbsp; When the Fed buys bonds and treasuries and doesn&#039;t resell them but takes that money out of the system that&#039;s Quantitative Tightening.&nbsp; When the Fed sells bonds and treasuries putting an excess of liquidity into the marketplace and driving down interest rates that&#039;s Quantitative Easing.&nbsp; We&#039;ve been in QE for about 13 years now but the Fed overreacted to the pandemic and &quot;printed&quot; way too much in the last two years.&nbsp; And we&#039;re all paying for it.&nbsp; The markets got used to easy money under QE.&nbsp; They&#039;re crashing under QT.&nbsp; Doesn&#039;t mean it&#039;ll last forever and we&#039;ll never have a good investment environment again.&nbsp; But it&#039;s going to take awhile to clear out all the deadwood.&nbsp; Something that should have been allowed to happen after 2008 but it&#039;s politically damaging to stretch out recessions.&nbsp; Now they have no choice.</p></blockquote><p></p>

[QUOTE="vantexan, post: 5386392, member: 24302"] You're saying that the money comes entirely from selling debt instruments. What happens if bonds and treasuries aren't sold in sufficient amounts to cover government spending? The Fed buys them. That's where the "printing" occurs. When the Fed buys bonds and treasuries and doesn't resell them but takes that money out of the system that's Quantitative Tightening. When the Fed sells bonds and treasuries putting an excess of liquidity into the marketplace and driving down interest rates that's Quantitative Easing. We've been in QE for about 13 years now but the Fed overreacted to the pandemic and "printed" way too much in the last two years. And we're all paying for it. The markets got used to easy money under QE. They're crashing under QT. Doesn't mean it'll last forever and we'll never have a good investment environment again. But it's going to take awhile to clear out all the deadwood. Something that should have been allowed to happen after 2008 but it's politically damaging to stretch out recessions. Now they have no choice. [/QUOTE]

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