Nick G.
@nickgiva1
JPM, Salomon, HF principal, bond trader. Co-host @2graybeards since 2023. Running since 2015.
364 Following 30.8K Followers
Again, for the slow kids who believe the crap posted by crypto/doomer influencers: Treasury's buybacks of longer duration paper are NOT money creation. Only banks and the Fed can create money, the Treasury cannot.
Not a single $1 is being created.
What they are is a lowering of duration held by the private sector (assuming he does not increase the supply of similar length coupons at next QRA to fund the purchases, which he won't).
Which, ceteris paribus, is an easing of financial conditions.
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