Where does the money that the feed is pumping into the reduction come from and who is initially getting it?
Answers:
It comes out of fine nouns -- ever since the currency go sour the gold ingots standard, the parliament can simply print the stuff -- or here suitcase, use the book-entry system.
It's going to the 21 primary vendor bank the Fed works beside but also to any wall that take deposits through the "discount window" -- where on earth a ridge can take a loan from the Fed. Bank of America Corp., Citigroup Inc., Wachovia Corp. and JPMorgan Chase & Co respectively borrowed $500 million yesterday. The Fed doesn't hold to hold the money contained by its sepulchre to generate the loan. It a moment ago does it. Pretty cool, huh? Oh, except this is where on earth inflation comes from -- too much money in the system.