Helping Antonio Fatas with the concept of printing

One statement that will not go away is the constant reference to "printing money" which is not only incorrect from a factual point of view (most of the increase in the monetary base corresponds to reserves not to bank notes being printed) but also misleading when it comes to the understanding of the role of central banks. Even those who support central bank actions during the crisis have to add a sentence at the end to warn us about the danger of so much liquidity. Fatas

Here he will point out that all Fed transactions trade one security for another. No real security is released, unattached. All of its business therefore winds down and returns to the original state. This is the monopoly model of banking.

The reality is the central bank is trading out of the market band, causing a market incompleteness by its own action, on purpose. It is paying too much in cash for too few bonds; and because transactions are out of band, they are not completely reversible; sterilized cash is the margin of trading losses. The result is a permanent abundance of short term paper and a shortage of long term bonds. That becomes increasing inefficiency in the fiat, and under the forces of real growth, a competitive fiat will arise and replace the inaccurate fiat.