In a recent talk, Portfolio Manager Steven Van Metre points out that contrary to public opinion, QE doesn’t “flood the system with liquidity”, but actually withdrawals liquidity from the Petro-Euro Dollar system. The irony of this is, that the Federal Reserve themselves published an article in 2014 confirming this to be the case:
The Fed Confirms QE Lowers Liquidity
![The Fed Confirms QE Lowers Liquidity](https://www.1332capital.com/wp-content/uploads/2021/02/alex-bierwagen-KvX3L_QXTgM-unsplash-crop.jpg)