Fed QE and Asset Inflation

Asset inflation caused by FED flooding the banks with cheap $.

Not quite . The banking system naturally creates new money during booms and destroys it during busts. In theory, the federal reserve is supposed to act as a counterweight leading to stability. In practice, it usually accentuates those trends due to political pressure - during bull markets like 2009 thru 2021, people think it’s a new normal and money printing even more is ok. Meanwhile consumer inflation stays low because everyone is putting money into assets that are going up exponentially.

The money the fed injects into the financial system is staying in the financial system. Too many dollars chasing too few equities could result in ‘equity inflation’=stock market bubble. (I am using the word equity as a symbol for any financial instrument) But none of this money ( or maybe just a token fraction of it) is reaching the real world. The purpose of this quantative easing is to prop up values of the warehouses of wealth. We still have massive unemployment but the firms doing the layoff

The Federal Reserve (the Fed), the central bank of the United States, prints money and buys the national debt (treasuries) in order to increase bank reserves and stimulate the economy. The Fed is doing this to such an extent that they are now monetizing (printing and buying national debt) 70% of all the debt issued since October, roughly when they started . They refuse to call it quantitative easing (QE) (despite it meeting the literal definition of QE). It's why markets are going up despit

Let's not forget ZIRP and QE Infinity:https://fortune.com/2019/05/02/fed-interest-rates-income-ine...

Sounds like a reference to quantitative easing.

The Fed is dumping cash into the financial system

The Fed does not create money. Banks create (expand) money by lending. The fed has purchased corporate bonds and swapped them for more liquid securities (treasury securities/M1). The Fed wants you to think there is inflation, so you get scared and "lock in" your pricing on homes/cars/etc. This activity stimulates the economy.

Fed invents money. It has to go somewhere. It goes into stocks. Someday it stops and so do stocks. Your grandchildren eventually pay it off somehow.

This article cites foreigners and big techs as the source of money without much to back it up.We know that in its institutional panic the US Fed pumped trillions of dollars into the economy in the form of QE 1-3:https://www.federalreserve.gov/monetarypolicy/bst_recenttren...Central banks around the world have followed the US lead in a coordinated effort