So the government does a $150 billion bond sale (borrowing)
RBA buys $150 billion, (QE printing)
Now, the RBA could one day sell those bonds but highly unlikely
The government receives $150 billion from the bond sale knowing it doesn't have to pay it back
Australia is a strong currency, so their won't be any inflation spikes
The government won't have to increase taxes but will have to increase pay to public servants
The government spends $150 billion into the economy, keeping the economy going and unemployment stable
The RBA owns $150 AUS bonds, forcing interest rates to fall
If I was the RBA, they could afford to spend another trillion dollars subsiding the federal budgets over the next 10 years !
QE is also very good for the sharemarkets !
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- FREE MONEY - RBA $150 Billion QE
FREE MONEY - RBA $150 Billion QE
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