" The term "printing money" often refers to a situation in which the central bank is effectively financing the deficit of the federal government on a permanent basis by issuing large amounts of currency. This situation does not exist in the United States."
Perhaps they are lying about what is really going on but I think transparency is of primary importance for the functioning of the bond market and I'm assuming they aren't lying.
That's what the balance sheet aspect is. There is a due date on the securities purchased by the Fed. Thus there is a time a limit.
The Fed does not consider quantitative easing as just printing money. I think if it were just printing money then people would not have faith in Treasury securities and thus the interest rate would be a lot, lot higher than it is now.
EDIT: From the link supplied above:
"Global demand for Treasury securities has remained strong, and the Treasury has been able to finance large deficits without difficulty. In addition, U.S. currency has expanded at only a moderate pace in recent years, and the Federal Reserve has indicated that it will return its securities holdings to a more normal level over time, as the economy recovers and the current monetary accommodation is unwound."
Wait - but quantitative easing usually involves buying back government bonds (in recent times it has also involved buying riskier instruments like collateralized debt obligations (eg. bundled mortages from freddy mac/fannie mae))
But government bonds are issued by the government as a form of govt debt to finance the federal government deficit.
So doesn't that mean that money IS being printed to finance government deficit? It's just that it goes through a slightly convoluted path to get there?
And the Federal Reserve is buying a lot of those treasury securities with printed money.