Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

What does the Fed do with the extra money it is printing? 
Usually the FED uses newly printed money to buy US treasuries from Goldman Sachs, JP Morgan, etc..  These banks then lend out the new cash which expands the money supply. During the height of the crisis the FED printed over $1.0 Trillion and bought....well...almost anything the banks couldn't offload elsewhere.  Mortgage Backed Securities, Credit Default Swaps, you name it - they bought it.  Must be nice to always have a customer to sell your junk investments to.  They also bought these securities at face value - not at market value.  Chart from here.  The FED announced in early November, 2010 that they will print another $600 billion and buy US Treasuries.  They will be buying ALL the debt that will be sold by the US government for the next 8 months.  This was admitted by the Dallas FED chairman in this article: For the next eight months, the   nation’s central bank will be   monetizing the federal debt. "Monetizing" is a fancy word for printing money. I think this was done because the US government ran out of customers for its debt.  China has reduced its purchases of US debt and the Social Security Trust Fund is no longer buying US debt since it is running a deficit.