Is the Fed boosting inflation by buying government debt?
“Outstanding U.S. public debt increased $1.4 trillion over the past year. Who were the buyers? The Federal Reserve’s Quantitative Easing (QE) policy gobbled up a net $1 trillion of Treasuries, while foreign buyers snapped up nearly $500 billion.”
USAGOLD note: For those of us who have been involved in the gold space for any length of time, the question posed in the headline will provoke a knowing smile or two. The purchase of government debt used to be called monetization, the very definition of which is printing money and, therefore …… inflationary. The value of this article lies in its presentation of relevant statistical facts, i.e., the Fed’s purchasing 70% of the federal debt issued last year.