Where does the Federal Reserve print money

The FED prints more money in a month than the total Bitcoin market capitalization

The Federal Reserve Bank of the United States printed more money in October alone than the entire current Bitcoin market capitalization. From mid-September to mid-October, it printed $ 210 billion.

Quantitative easing

The FED has cut the interest rate for the second time this year. In addition, it has long been trying to stimulate the economy with newly printed money. The fiat-based financial system allows the Federal Reserve to print money at will in order to buy bonds on the market and thus bring liquidity into the market. In theory, the newly created liquidity should flow into the economy and generate growth.

Currently, the Fed has printed more than $ 210 billion in just one month. The total market capitalization of Bitcoin (BTC), valued at USD 148 billion, is thus dwarfed by the newly introduced US dollar. As Dennis Parker noted on Twitter, the Federal Reserve has increased its own balance sheet from $ 3.77 trillion to $ 3.97 trillion. According to forecasts by the FED, this amount is expected to rise to around 4.7 trillion US dollars by 2025.

Another financial crisis feared

At the moment there are increasing opinions from economists that a recession can be expected in the coming years. The former Governor of the Bank of England, Mervyn King, even stated in a speech at the general meeting of the International Monetary Fund that there is slumbering a financial crisis that will be worse than the crisis of 2008. In the meantime, there has been no fundamental questioning of the ideas that led to the crisis a decade ago.

"By sticking to the new orthodoxy of monetary policy and pretending to have made the banking system safe, we are sleeping towards this crisis." - Mervyn King

He added that the US would suffer "financial Armageddon" if its central bank - the Federal Reserve - did not have the firepower to tackle another episode similar to the subprime mortgage sale.