Send a 40K check to anyone who makes less than 150K
- Thread starter KINGOFSHORTS
- Start date
I am there with you. Wouldn't that "jumpstart" the economy? They might want to design a new $500 bill with Obama's picture.
Will the bailouts ever end? Now the states are coming after money too.
http://www.reuters.com/article/newsOne/idUSTRE5014F120090102
Even better, how about bushel baskets of cash next to cash registers? We could have Uncle Ben trash trucks delivering loads of currency daily. Want something and don't have the money to pay for it? Grab a wad out of the ObamaBasket and throw it at the person working the register! Instant economic boom! Nuclear, even. Just borrow it. Or print it, it's FREE MONEY! Woo Hoo!
But it makes an essential point. One blunt policy movement could reverse the deflation and debt insolvency problem and instantly transfer us into a mode of inflationary spiral.
So in all seriousness, the question is 'how much' with regards to quant easing / money printing will get us out of the mire and restore us to status quo trend growth without going over the top...
Japan's problem was they simply didn't do enough.
Printing money does not create wealth, it is just like a stock split. The system that created all this fictious crap is broken and will not be restored. The last years of "growth" were created by lax lending standards, which in turn inflated real estate prices, which in turn allowed home owners to suck out equity from their residences that never really existed. Those consumers then spent those funds on crap that was made overseas. The funds then ended up in countries that were nice enough to then purchase treasuries, which in turn supressed yield, and made money more readily available to the US consumer. It was nice little circle while it lasted, but face it is over.
Systematically we are broken and that can not be restored. Printing money makes me want to invest in one thing, a wheelbarrow so I can get my greenbacks to the store to buy a loaf of bread.
