by David Kranzler
Investment Research Dynamics
“How do you print out of thin air $3 trillion and get it into the stock market this year without anybody seeing you do it? ‘Stock market’ meaning ‘stock market and other high risk/high yielding assets…’ The answer as it turns out is you don’t print $3 trillion, you print $6 trillion. You print a $3 trillion original, a master, and you print a $3 trillion clone right behind it.” – John Titus, Best Evidence
“QE is intended to to boost the amount of money in the economy by purchasing assets, mainly from non-bank financial companies. QE initially increases the amount of bank deposits those companies hold (in place of the assets they sell). Those companies will then wish to rebalance their portfolios of assets [i.e. reinvest the cash they receive from the Central Bank via the QE transactions] by buying higher-yielding assets, raising the price of those assets and stimulating spending in the economy.” – Bank of England Quarterly Bulletin, 2014 Q1, “Money Creation in the Modern Economy”