Yes, the Fed HAS taken it. I mean really.
The sum total of currency units (dollars) is the number of slices of the economic pie (GDP or total inherent value).
When the Fed “prints” more dollars (now at the rate of $85B/mo) the value represented by each dollar decreases, and is shared to the new dollars. Part of your 401k-invested value is transferred to those new dollars - redistribution of wealth via teleportation.
If the Fed doubles the currency supply, the value (purchasing power) of your investments is halved, while the new currency picks up the other half of that value just by coming into existence. The federal government takes that newly-confiscated-by-teleportation wealth and gives it to welfare recipients, creditors, and other unfunded liabilities - satisfying those obligations, while acquiring that wealth thru accounting sleight-of hand, and halving the value which was promised by redefining the representation thereof.
You have $10 in your 401k. Ten dollars of value. The federal government owes others $10 but has zero dollars value. (Note the difference in semantics.)
The Fed doubles the money supply.
The buying power of your investment halves, because inflation just hit 100%.
You still have $10 in your 401k, but it buys five “old” dollars of value.
The federal government now has $10 out of thin air, which also buys five “old” dollars of value (taken from you and you didn’t even notice save for $ shrinkage).
The federal government can now hand $2 to the 47%, $1 to creditors in interest payments, and $2 to other unfunded liabilities; those contracts are fulfilled.
And you sit there going “but...they didn’t _really_ raid my 401k...WTF happened?”
I agree with you... good explanation.
Isn’t it true, though, that at least right now, the banks have these new dollars in their reserve currency, and either won’t lend it out, or is prevented from lending it out?
Thus, at least in theory, it is not inflationary. If that is all the case, then the FED is thinking they are so adept, all they have to do is snuff out these new dollars when inflation starts to pick up.
Thus, they get to inflate the money supply without us seeing inflation, and then contract it.... IF they are quick enough.
Hmmmm... the hole in this is... I know they are borrowing 1+ Trillion, and spending it...