Long Silver John

To Monetize or Not to Monetize: Who Cares?

I sense intuitively that when the Fed buys up all the newly issued Treasuries that need to be purchased, this will result in an increase in the money supply in circulation and therefore price inflation. Yet I am having trouble understanding how this scenario actually gets money in circulation (i.e., beyond offsetting book entries within the government). How does that happen, or are you saying it doesn't happen and this scenario offers a cost-free solution to massive government deficit spending? Please clarify...