# QE3 - explained with pictures



## CulexPipiens (Nov 17, 2010)

Actually it explains the whole financial system and QE3 and the eventual failures because of it.

http://demonocracy.info/infographics/usa/federal_reserve-qe3/money_printing-2012-2013.html


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## BillS (May 30, 2011)

The government is also monetizing 90% or more of the $100 billion monthly deficit. (Remember the good old days when the _annual_ deficit was $100 billion?) Very little new debt is being sold. The Fed creates new money to lend to the big banks money at about 0.75%. They borrow it and buy Treasuries. So in effect, the Fed is monetizing almost all our new debt while propping up the banks. That process is twice as bad as open ended QE3.

Both of those processes together have brought us to the pre-avalanche stage of the dollar. Panic selling of the dollar could start today, tomorrow, next week, next month, or next year. We just don't know when.


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## partdeux (Aug 3, 2011)

BillS said:


> The government is also monetizing 90% or more of the $100 billion monthly deficit. (Remember the good old days when the _annual_ deficit was $100 billion?) Very little new debt is being sold. The Fed creates new money to lend to the big banks money at about 0.75%. They borrow it and buy Treasuries. So in effect, the Fed is monetizing almost all our new debt while propping up the banks. That process is twice as bad as open ended QE3.
> 
> Both of those processes together have brought us to the pre-avalanche stage of the dollar. Panic selling of the dollar could start today, tomorrow, next week, next month, or next year. We just don't know when.


Bill, If I understand the system correctly, the fed collects 6% interest. Govt loans it out to the banks (which own the Fed) at .25% interest.


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