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Federal Reserve balance sheet trends

federalreserve.gov

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Re: Federal Reserve balance sheet trends

#8

Has anyone any idea what that means to the average joe? How to protect one's purchasing power? If the government can give you free money (1200$ checks), it also has the power to take everything away from you, right?

The $1200 money isn't free, it is borrowed from future taxpayers.

The money the Fed prints doesn't go to Joe Average. It goes to investors who are selling the Fed junk bonds. (They then turn around, and buy stocks with those dollars, which is why the market is soaring.)

Re: Federal Reserve balance sheet trends

#10
post #8

Has anyone any idea what that means to the average joe? How to protect one's purchasing power? If the government can give you free money (1200$ checks), it also has the power to take everything away from you, right?

The $1200 money isn't free, it is borrowed from future taxpayers. The money the Fed prints doesn't go to Joe Average. It goes to investors who are selling the Fed junk bonds. (They then turn around, and buy stocks with those dollars, which is why the market is soaring.)

> The $1200 money isn't free, it is borrowed from future taxpayers.

That is a pretty outdated view. More like the money supply grew and everyone's money is a bit less worth.

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