The actions of the Federal Reserve have an air of dark wizardry about them – they are mysterious, powerful, and use forces that appear to be a kind of magic. The most powerful incantation is the often-muttered “Quantitative Easing”, a spell that has moved from the dark recesses of economics into the popular press. What it means, in the end, is that the Fed literally conjures money from thin air and gives it to the US government to go out and spur some kind of economic growth. Though this handy li’l charm is now being openly discussed the reasons why it has become so useful have not.
You want to see a magic act? This is one helluva trick. It’s showtime at the Fed.