â€œThe Fed has kept short-term interest rates near zero since December 2008 and has bought more than $2 trillion in long-term securities to push borrowing costs down further and boost recovery from the 2007-2009 recession.â€ (Fed unlikely to extend QE2, officials say by Ann Saphir (Reuters â€“ 03/25/11)
The Federal Reserve was able to buy $2 trillion in long-term securities. This is amazing consider that GDP is right around $14 trillion (Google) and the 2010 US Federal Government is $2 trillion (wikipedia.org). Where does the Federal Reserve get that $2 trillion from? (From what Iâ€™ve read, it seems it just gets it out of thin air.) The ability to pump this amount of money into the economy is just extraordinary.