Hello: Maybe someone here can shed light on this for me: I see is mentioned over and over that the FED®, in order to fight deflation (encourage inflation) would resort to buying treasuries. Why would such action by them fight deflation? It seems that it would only drive up the prices of treasuries alone, not prices over all. I don't see it as pumping that much money into the system because that money is really already there. I could see printing new money to increase the supply, thereby deflating the value of the dollar and inflating prices. But I fail to see how buying treasuries will do that. Can someone explain this to me?Thanks,Splotto
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra