Source: Flickr by Banzai

Category: Bailouts, Digital Media, Federal Reserve, Humor

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

14 Responses to “QE Explained”

  1. wally says:

    Yes… it all fits together now.

  2. Petey Wheatstraw says:


    The chart could be much improved if the boxes in the “Real Economy” were shown in relative size to their influence on real-world economic conditions. Were that the case, one would have to scroll far down and far right to see the true relative extent of “Client Sodomy.”

  3. Bam_Man says:

    A perfect explanation, except the “COMEX Gold & Silver Rigging” box is missing.

  4. Bam_Man says:

    Or maybe that one falls under the “Derivatives Gambling” or “Client Sodomy” categories?

  5. AHodge says:

    but where are the bonus boxes? and the trickle down to caterers ice sculptors, car elevators, stable groomsmen and horsetrainers. i hear those multipliers are high
    and the business expense boxes–incl lapdances at Scores, manhattan hi rise boom boom rooms, and business entertainment sodomy.

    as Ray dalio points out for QE and printing money generally
    without other steps
    the bond purchase cash proceeds probably go to buy something very much like treasury bonds
    thats a looong long way from buyin a house or a car

  6. Tim says:

    And Muppet Sodomy….

  7. AHodge says:

    it would be interesting to learn what the primary dealer QE fees and spreads are
    for 2 trillion goin on three trillion?
    does it go into and out of the dealers?
    one might ask why the treasury just doesnt pass it to the fed directly–no middlemen
    i believe they donot?

  8. AHodge says:

    they have reasons actually
    forgot they have to validate the transfer with “market pricing”
    ha ha
    they are actually doing it to distort the pricing

    its also said in govt finance circles to be very bad for a central bank to eat treasury debt issue
    ha ha
    we wouldnt want to to that would we?

  9. DeDude says:

    Would be nice to see the exact cost of these “primary dealer” middle men, and then ask them to justify their cuts by some kind of needed “service” they presumably deliver (no sodomy is not a needed service).

  10. Frilton Miedman says:

    Here I am, all excited to open a detailed explanation by BR on the inner workings of Fed QE.

    What do I get?

    A detailed explanation on the inner workings of Fed QE.

  11. DiggidyDan says:

    Hahahahaha, are we using the broad term for Sodomy (anything other than “regular”) in which we can appease our banker overlords in various ways and hope that they shower small gifts upon us for our efforts? or the more specific term, in which we get down on our knees and take it like a man?

  12. this is a good one. An image is worth a thousand words.

  13. 10x25mm says:

    I want to know how the Fed exits QE without crushing bank reserves. Do they swap out the current raft of Treasuries for zeo coupon bonds or some other kind of alternative paper?