http://www.cnbc.com/id/100756275
This is an article published last year that I turned up in a search for background literature on analysis of Fed balance sheets.
I have been approaching a conclusion that no money was “printed” to pay for bonds purchased under the various QE programs and that he "money printing" hysteria was based on a misunderstanding of the monetary aggregates. The Fed paid for the bonds using bank reserves and uninvested bank clearing account balances. The only money actually “printed” by the Fed in the last six years were physical currency notes for sale to commercial banks under the established processes for distributing specie. This money has to be paid for.
I had one of those "I can't possibly be the first person to noticed that the gold bug money printing mantra is bullshit" moments, and I was right.
Gittler's subsequent article goes further into the mechanics.
http://www.cnbc.com/id/100760150#.
It is a little embarrassing for me that in 2009, I believed the "money printing" story. In my younger days I worked as an ES cash trader, so I should have known better.
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