"The Fed "expands its balance sheet" by buying government bonds from private banks. In exchange for these securities, the Fed credits the banks with funds it creates out of thin air. The banks then pass the funds to the general public through loans. But it's important to realize that the Fed does not have any money to actually buy the bonds in the first place. The funds are "created" by a Fed computer." - in IB Times
Related: SPDR SP 500 ETF (SPY), SPDR Gold Trust ETF (GLD), iShares Silver Trust ETF (SLV), iShares Barclays 20+ Yr Treas.Bond ETF (TLT)
Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.
