“Chmn. Bernanke: When we buy securities from a private citizen, we create a deposit in their bank, and it shows up as reserves. So if you look up our balance sheet, our balance sheet balances. We have Treasury securities on the asset side. On the liability side we have either cash or reserves at banks, and on the margin that’s what has been building up as excess reserves at banks.   Rep. Rothfus: You create the reserves?   Chmn. Bernanke: Yes.   Rep. Rothfus: Is that printing money?   Chmn. Bernanke: Not literally.”

http://www.economicpolicyjournal.com/2013/07/bernanke-im-clueless-about-gold.html

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