Anyone willing to bet on a devaluation of the dollar when all the debt bubbles burst?

[Mikebert]

(09-08-2016, 11:44 PM)Warren Dew Wrote: That (open market transactions) is one way by which the Fed controls interest rates, yes.  The other way, which is the more normal way when natural interests rates are not so low, is by controlling the discount rate at which banks can borrow against reserves.

I think the term "quantitative easing" mostly refers to the direct purchase of bonds in large quantities - the Fed owns a large fraction of all U.S. government bonds - in place of using the discount window or similar measures more directly related to the interest rate.

The discount rate has not been a significant tool of policy for a long time.  I think you are confusing the discount rate with the federal funds rate.  This is the rate set by normal open market operations.

Quantitative easing does indeed involve the purchase of bonds, just as do normal open market operations.  It differs in that it targets long-maturity bonds.  That is, it is an effort to influence long-term rates.