“You will never look at money the same once you realize you are working hard for fake numbers on a screen that were created out of thin air.”
- Anthony Pompliano
The Lords of Easy Money book excerpt:
“The primary dealers have special bank vaults at the Fed, called reserve accounts.* To execute quantitative easing, a trader at the New York Fed would call up one of the primary dealers, like JPMorgan Chase, and offer to buy $8 billion worth of Treasury bonds from the bank. JPMor-gan would sell the Treasury bonds to the Fed trader. Then the Fed trader would hit a few keys and tell the Morgan banker to look inside their reserve account. Voila, the Fed had instantly created $8 billion out of thin air, in the reserve account, to complete the purchase. Morgan could, in turn, use this money to buy assets in the wider marketplace. This is how the Fed creates money— it buys things from the primary dealers, and it does so by simply creating money inside their reserve accounts.”
