The Federal Reserve has announced its plans to print over 400 billion US Dollars around New Year to be injected into the economy early in January. The statement was released on Dec. 11 by the FED to confirm the continuation of the repurchase plan for the next year.
In total, the FED will print about 425 billion USD, which at the moment is more than three times of Bitcoin’s current market cap. The repurchase plan is designed to act as an assurance for banks to continue their day-to-day business without fear of interruption.
Excerpt from the Federal Reserve’s statement:
“In accordance with the most recent FOMC directive, the Desk will conduct repo operations to ensure that the supply of reserves remains ample and to mitigate the risk of money market pressures around year end that could adversely affect policy implementation.”
Whether this measure will have the desired effect remains to be seen. To many critics of the basically limitless printing of money, it seems that the money is simply being gobbled up by banks and high finance without any tangible effects on the economy. Many label the FED’s actions as a failure when it comes to managing the economy.
What do you think? Is the FED on the right track and actually holding up the economy, or are its actions only delaying an inevitable FIAT crash in the future?