This is a simple but effective picture that shows how the QE works. You must have heard this word a many times in the news Quantitative Easing. Feds use this word quite often and each time they have money to throw around it’s called QE or Quantitative Easing.
This Graphics below that I picked up from NewYork Times shows this process in simple but elegant way. Call it Stupid but that exactly what it is….how about printing your own credit card, then printing all the currency note and than paying you own credit card with the money you just created……how ever non-sense and stupid it sounds like QE is nothing but that.
First point on the graphics itself shows that….
1) Federal Reserve creates money and credits to it’s own account :)…enjoy….!!


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