http://wredlich.com/ny/2012/10/hyperinflation-countering-matthew-obrien/ Reckless Spending and Foolish Laws Thu, 25 Apr 2013 21:04:30 +0000 hourly 1 http://wordpress.org/?v=3.5.1 http://wredlich.com/ny/2012/10/hyperinflation-countering-matthew-obrien/comment-page-1/#comment-3647 Chris Walcek Wed, 31 Oct 2012 23:29:14 +0000 http://wredlich.com/ny/?p=1380#comment-3647 Good analysis Warren. I’m with you. The phrase “Fed BUYs longer-term bonds” is such a misused phrase. Where does the Fed get money to “buy” these bonds? Educate me, but isn’t the ONLY source of the “Fed’s Dollars” printing? Maybe not, since presumably the Fed is paid back money that was lent out in previous bouts of printing (“Quantitative easing”). I’d be curious to know the ratio of lent money that is printed vs. “re-lent-but-previously-paid-back” dollars in any given year, but your money supply graph I think spells this out, although one would have to subtract the effects of “real” growth (greater population and/or/workers) from the money supply growth.

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