some questions about QE

C

cf0532

I want to know some more details about QE by FED:
1. how many times has FED carried out QE, and how I can get the latest situation about this?
2. How does FED carried out QE? for example, FED will declare that it now carry out QE , and how much money will be printed for the first round? and later, how much for the 2th round, and so on? and at last, it will declare FED will quit QE? after FED has quit QE, how long at least for FED carry out the next QE? when the next come out, the 1st round, 2nd round like this?

thank you.
 
cf0532 said:
I want to know some more details about QE by FED:
1. how many times has FED carried out QE, and how I can get the latest situation about this?
2. How does FED carried out QE? for example, FED will declare that it now carry out QE , and how much money will be printed for the first round? and later, how much for the 2th round, and so on? and at last, it will declare FED will quit QE? after FED has quit QE, how long at least for FED carry out the next QE? when the next come out, the 1st round, 2nd round like this?

thank you.
More...

1. This is QE3, so 3 times since the 2008 crisis.

2. It doesn't actually print money. It transfers funds to other accounts electronically. Every time the FED meets, they look at the progress of QE and decide whether it's appropriate to increase or decrease the volume of QE.

QE1 (November 2008)- Fed buys 30 billion in treasuries every month
QE2 (November 2010)- Fed bought 600 billion in treasuries by the end of Q2 2011
QE3 (September 2012)- Fed bought treasuries ranging from 40-85 billion per month

As you can see, it's taken about 2 years in between QE phases. You can get the latest by following cnbc, bloomberg, or http://www.federalreserve.gov/monetarypolicy/default.htm
 
badnewsbear said:
1. This is QE3, so 3 times since the 2008 crisis.

2. It doesn't actually print money. It transfers funds to other accounts electronically. Every time the FED meets, they look at the progress of QE and decide whether it's appropriate to increase or decrease the volume of QE.

QE1 (November 2008)- Fed buys 30 billion in treasuries every month
QE2 (November 2010)- Fed bought 600 billion in treasuries by the end of Q2 2011
QE3 (September 2012)- Fed bought treasuries ranging from 40-85 billion per month

As you can see, it's taken about 2 years in between QE phases. You can get the latest by following cnbc, bloomberg, or http://www.federalreserve.gov/monetarypolicy/default.htm
More...

Thank you very much, your reply answer all my questions here clearly.
Now I have another question according to your reply(Marked on red) as below:
It doesn't actually print money but transfers funds as you said; I want to know what is the difference between printing money and transferring funds on the economic aspect. I mean whether printing money or transferring funds for QE, the money mount on the market after QE increases; yes?
I hope I have explained my question and not bother you much.
 
I still don't understand the production about Bitcoin, and I just see its value soar and gold dives, I guess these soar and dive have direct relationship, because their value are both shown for currency.

So how do you think about this? and what is the future for bitcoin in your eyes; and I see some countries have ban bitcoin.
 
cf0532 said:
I still don't understand the production about Bitcoin, and I just see its value soar and gold dives, I guess these soar and dive have direct relationship, because their value are both shown for currency.

So how do you think about this? and what is the future for bitcoin in your eyes; and I see some countries have ban bitcoin.
More...

Bitcoin is driven by speculation. Gold is diving because it was in a bubble from 2007, which burst in 2012, so the gold market is correcting itself.

The future of bitcoin is speculative. Bad news drives the price down. Good news drives the price up. If the US government pushes to regulate bitcoin, its price will dive.
 
cf0532 said:
Thank you very much, your reply answer all my questions here clearly.
Now I have another question according to your reply(Marked on red) as below:
It doesn't actually print money but transfers funds as you said; I want to know what is the difference between printing money and transferring funds on the economic aspect. I mean whether printing money or transferring funds for QE, the money mount on the market after QE increases; yes?
I hope I have explained my question and not bother you much.
More...

The US treasury prints money and puts it in circulation. The FED buys and sells bonds. The money that the FED creates by buying bonds theoretically goes into the economy. When the FED sells bonds, it is theoretically taking money out of the economy. Its goal is to maintain low unemployment, control inflation, it does so by controlling interest rates.

So, yes, QE increases the supply of money. However, the way that money is spent is not controlled by the FED. Banks are sitting on cash, and not loaning it out as they would due to government regulation, which I think is the result for low consumer inflation. Right now consumer inflation is at 1%, and the FED's goal for inflation is 2%.
 
badnewsbear said:
The US treasury prints money and puts it in circulation. The FED buys and sells bonds. The money that the FED creates by buying bonds theoretically goes into the economy. When the FED sells bonds, it is theoretically taking money out of the economy. Its goal is to maintain low unemployment, control inflation, it does so by controlling interest rates.

So, yes, QE increases the supply of money. However, the way that money is spent is not controlled by the FED. Banks are sitting on cash, and not loaning it out as they would due to government regulation, which I think is the result for low consumer inflation. Right now consumer inflation is at 1%, and the FED's goal for inflation is 2%.
More...

Thank you! I think there are two matters you have discussed above.
1. Government regulates economic by buying and selling bonds, but FED can't control the flowing direction of money in the free market.
2. FED really print money. my question is how does the money 's value was distributed. I mean FED need some money "x" as costing of printing money, and the money;s value is "y"; there is a big gap between x and y; who occupy this big gap.
according to my understanding, each time for FED to print money, it is equal that some treasure has been captured from the people who hold some money
 
Would be really interesting if the fed holds off on cutting another $10 billion this month due to the recent 3-4% slide in the markets...

I say end QE right now...
Hasn't done anything, but prop up stocks around the globe...
 
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