However, I do acknowledge the fed bought bonds. Yet their balance sheet could accomidate these purchases to an extent. The shortfall of liquidity was picked up by social security who dwarfed the fed's purchases. The US government borrowed more from social security pensions than it did from the fed. More, Treasuries are still being auctioned. However, no printing was required by the US government and no printing will be required for considerable time. Where I may be wrong is my assumption that the ECB had to print. Perhaps their balance sheet could accomidate more than the stated 60 Billion euros it lent. Add to this stronger countries coming to aid the ECB and perhaps the damage of printing was limited. However they still had to print.
