Quantitive easing

[sammmo]

The US are printing $500billion dollars in another bout of Quantitive easing..My Question is how does that money actually get out into peoples pockets.. The US government don't just hand it out do they..

[factor-fiction]

Just do a search on Quantitative Easing (not 'quantative') and I'm sure you'll find lots of explanantions. They don't actually print notes.

[factor-fiction]

Try this WIKI guide for starters
http://en.wikipedia.o...i/Quantitative_easing

[boxtops]

Here's a good one http://en.wikipedia.o...i/Quantitative_easing

[boxtops]

morning factor, snap!

[sammmo]

So in a nutshell.. the central bank does'nt actually print any money it just "buys" bonds and gilts etc from banks with "pretend money" but its normal money to the banks and they can therefore use this money that they have been credited with to loan out to businesses and customers. Then the customers and businesses spend this money on other stuff therefore boosting the economy.. So basically this first creates business for the banks, then businesses can employ more people who then get paid money to spend in shops etc.. sounds as though we are living on a shoe string..