Bernanke's Play = Monetizing the Debt

How much will Ben and the fed give me for my junk if I put it in a box and take it to their discount window?

Anyone....anyone?


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Quote from jamis359:

Is it? Hoover tightened the money supply in the early 1930's and most economists today say that deepened the Depression. Dollars became more scarce but debts remained unchanged, making it harder to make payments. Defaults increased and bank failures ballooned.

Inflation is the debtor's friend. Pump more dollars into the system, dilute the currency and debts are easier to pay off.* Everybody loves to trash Bernanke but I think we'll see in the long run that his approach will cause less pain than Hoover's.

*except for variable-rate notes!
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Great, everyone in debt will be bailed out. All those who bust their ass and save will be screwed. And then who's going to bail out the country's debt?
 
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