During yesterday's Financial Services Committee hearing with Ben Bernanke, Freshman Rep. Sean Duffy questioned Bernanke directly about QE3. The Fed Chairman confirmed that QE3 is indeed on the table as the Fed continues to wade into uncharted waters.
As the video starts out, pay attention when Rep. Duffy asks where the Fed gets the money to purchase assets. He asks if the Fed is printing money, "No," Bernanke replied, "we're not printing money, we're creating reserves in the banking system." Translation: Yes, we're creating money out of thin air...
http://www.youtube.com/watch?v=TlPUjbfkKB0
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