gold, page-24937

@gozinsa

"So we live in a magical world where central banks can just spend as much money as they want with no consequence?"

Technically, the Fed could buy back every US treasury bill, note or bond on issue, without adding one penny to M3.

Plainly if they did that people would notice and it would create a bit of a fuss. Not the least from the markets, who depend on US treasuries for pricing and risk bench marking.

But if the Fed bought say another $1 trillion to stabilise the market, (except for the hyperventilation of nutters who can't tell the difference between Broad Money and M3) there wouldn't be much of a problem. Everyone is used the QE these days.