Courtesy of Jr. Deputy Accountant
Robert Auerbach writes via HuffPo:
Today in the middle of the Bernanke Fed’s continuing purchase of $600 billion in Treasury securities — its quantitative easing purchases, "QE2," which ends in June 2011 — where do you think most of the $600 billion is going? Loans to businesses? Purchase of private sector income earning assets? No and No. Since September 2008 — 25 months — the Fed has pumped out an average of $49 billion a month. This monetary base of the country (currency, coin and bank reserves) is now $2.210 trillion. Over half (57 percent) of the $2.210 trillion sits in the banks as reserves drawing interest.
Recommended reading: No No, We Should Pay Banks MORE To Store Their "Money" In the Fed Vault, Duh!
