During the past decade, the Federal Reserve has created 4 trillion dollars out of thin air in an attempt to prop up the economy. The Fed seems hesitant to unwind that as it carries the risk of harming the economy. Fiat money can always be created out of thin air, and it seems to be proving difficult for those in power to resist that temptation.
>During the past decade, the Federal Reserve has created 4 trillion dollars out of thin air in an attempt to prop up the economy.
During the 1840's to 1860's we created billions of dollars out of thin air by mining gold from the ground in California. Fiat currency saves us the digging.
Money is not a static "thing" that definitely exists. Markets need liquidity. QE has provided that liquidity as the vast majority of capital in our society has become locked up by the top 1%. If anything, they could increase the flow of QE because of how low inflation is right now.
https://www.thestreet.com/story/14181100/1/the-fed-normalize...