Federal Reserve Chairman Ben Bernanke on CBS’s “60 Minutes” last year:
PELLEY You’ve been printing money?
BERNANKE Well, effectively. And we need to do that, because our economy is very weak and inflation is very low. when the economy begins to recover, that will be the time that we need to unwind those programs, raise interest rates, reduce the money supply, and make sure that we have a recovery that does not involve inflation.
Bernanke on “60 Minutes” this year:
BERNANKE One myth that’s out there is that what we’re doing is printing money. We’re not printing money. The amount of currency in circulation is not changing. The money supply is not changing in any significant way. What we’re doing is lowing interest rates by buying Treasury securities. And by lowering interest rates, we hope to stimulate the economy to grow faster. So, the trick is to find the appropriate moment when to begin to unwind this policy. And that’s what we’re gonna do.
And the Fed is buying Treasury securities how? By printing money.
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I have to give it to Mr. Stewart. That was a good summation of the insanity that is going on in the FED and DC now.
This is why gold is going to head higher.
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