Sunday, November 25, 2012

Federal Reserve Pumps Money Into the System

"The Federal Reserve has started the printing presses now that the election is over.

It is beginning to pump some money into the system. Last week it turned $42.5 billion of debt into dollar currency - what is called monetization. Only $2 billion was new cash currency, which are the dollar notes that we carry in our pocket. The rest was deposit currency, which are dollars that circulate within the banking system.

Regardless, both are currency, and they both can juice the system, though deposit currency tends to have a bigger and immediate impact because it circulates more efficiently and usually more quickly...."

- James Turk, via a recent King World News Interview, read the full interview here: