How a toaster killed inflation

Low cost Chinese manufacturing and the Internet have played big roles in keeping inflation low. In the aftermath of the global financial crisis the return of inflation was a real threat. Central banks everywhere were rolling the presses on an unprecedented scale. In November 2008, the US Federal Reserve unveiled QE1, a quantitative easing program that involved the Fed purchasing about US$1 trillion in mortgage backed securities. The Fed finally ceased purchases in October 2014 having purchased US$4.5 trillion in bank debt. The money used to make these purchases was not real in the way that you and I understand it. Created with the stroke of a pen, it showed up as a few more zeros on a screen. As long as you’re a government with a compliant central bank, money can indeed be created from thin air. Continue reading article: (VIEW LINK)