Doesn't injecting cash into the system just represent

[Subdivisions]

more funny money in the economy? I don't understand how they can inject this cash without exacerbating the problem that already exists. Perhaps someone a bit more market savvy than me can explain?

[TwilightGardener]

1. I don't really get it either. Seems like it just devalues the dollar to

simply print more of it and give it away. I have no brain cells for this stuff.

[Warpy]

2. It only creates inflation

Stupid has been printing money throughout his residency, spending more than he dares to take in, knowing the bills won't come due until he's long gone.

Unfortunately, what they need to do is scrape it off the very top and recirculate it at the bottom, something they will never, ever do.

Expect a shitty economy for the foreseeable future, stagflation that Nixon only had nightmares about.

[bunkerbuster1]

3. Yes.

This has been another edition of "Simple Answers to simple questions."

(Having said that, such things are done rather often. The Europeans actually pumped about 3x the funds into their system today. The important thing to remember is--it isn't "welfare" when important people are on the receiving end of it.)

[Poll_Blind]

4. Nope, that is exactly it. n/t

PB

[Hydra]

5. Remember that it's all funny money

Watch money as Debt on Google. Very eye opening. Those pieces of paper only have value as long as we believe that they do.

If we started asking for gold or silver at the time of our paychecks, the whole system would collapse.

[gratuitous]

6. IF it was going to get circulated . . .

If all these billions were going to be circulated in a market that has lost its liquidity, then it might do some good. But if the Fed just sent out some $40 billion for bankers and other institutions to just sit on, then it's a totally useless exercise.

Think of an engine about to seize up due to overheating and underlubrication. Someone hands you a case of oil to put in the crank case immediately. Instead, you marvel over 24 perfectly symmetrical cans of beautiful, beautiful 30 weight while the engine starts smoking and seizing. Suddenly, you're left with 24 cans of oil and a pile of junk. The infusion of money into this seizing engine will have no effect unless it's actually used. And who is going to want to put money into the mortgage market -- even someone else's money -- if there's no guarantee it will fix anything?

[NYC]

7. I agree that it exacerbates the problem,

and postpones the reckoning.

[Hydra]

8. BAM!

:think:

It just hit me. Not postpones...we're still screwed.

How do you usher in a Totalitarian Government? You make the people beg for it. You either capitalize on a disaster, or you create one and pretend to offer a solution to it.

:scared:

[malaise]

9. Last time they tried it

we got the New Deal.

[Hydra]

10. I sure hope so

Cuz the alternative ain't pretty.