onlooker wrote: And that fact that this strategy would cause inflationary pressures means that it is a tacit resignation that the whole debt economic model is destined to falter and disappear in the absence of growth and/or contraction.
Cog wrote:Didn't the government send out some sort of stimulus checks a few years ago? Its a bit hazy in my memory but the amount was not large. I could see the government doing something small scale like that again.
radon1 wrote: So, it's really safer to do this the way Mr. Ben has done it, since the effect is the same, but the control over the flows is much better.
peripato wrote:Doesn't mean they won't try it. Anything to keep BAU running for as long as possible. That's the aim...
MonteQuest wrote:onlooker wrote: And that fact that this strategy would cause inflationary pressures means that it is a tacit resignation that the whole debt economic model is destined to falter and disappear in the absence of growth and/or contraction.
The thinking is that it would be used to fight deflation, so inflation wouldn't be a worry. And if it did, they could sell bonds to shrink the money supply. With the capital flight of money out of China to dollar denominated assets, that might work...until it doesn't.
onlooker wrote:Or until inflation runs amok and becomes hyperinflation and all faith in money is lost. Then what?
onlooker wrote:did the kites work haha?
MonteQuest wrote:peripato wrote:Doesn't mean they won't try it. Anything to keep BAU running for as long as possible. That's the aim...
Helicopter money drops in China, the euro area, the UK, and the U.S. and debt restructuring . . . can mitigate and, if implemented immediately, prevent a recession during the next two years without raising the risk of a deeper and longer recession later.—Citigroup
In the UK, a helicopter money drop was put on the table by Jeremy Corbyn, the newly-elected Labor leader. Overt Money Financing (OMF) – injecting money directly into the economy.
peripato wrote:The end will be epic...
MonteQuest wrote:peripato wrote:The end will be epic...
Yeah, but some new jobs will be created...like sweeping discarded money from the gutters.
In 2002, following coverage of concerns about deflation in the business news, Bernanke gave a speech about the topic.[60] In that speech, he mentioned that the government in a fiat money system owns the physical means of creating money and to maintain market liquidity. Control of the money supply implies that the government can always avoid deflation by simply issuing more money. He said "The U.S. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at no cost."[60]
He referred to a statement made by Milton Friedman about using a "helicopter drop" of money into the economy to fight deflation. Bernanke's critics have since referred to him as "Helicopter Ben" or to his "helicopter printing press." In a footnote to his speech, Bernanke noted that "people know that inflation erodes the real value of the government's debt and, therefore, that it is in the interest of the government to create some inflation."[60]
For example, while Greenspan publicly supported President Clinton's deficit reduction plan and the Bush tax cuts, Bernanke, when questioned about taxation policy, said that it was none of his business, his exclusive remit being monetary policy, and said that fiscal policy and wider society related issues were what politicians were for and got elected for. But Bernanke has been identified by The Wall Street Journal and a close colleague as a "libertarian-Republican" in the mold of Alan Greenspan.[55]
MonteQuest wrote:Cog wrote:Didn't the government send out some sort of stimulus checks a few years ago? Its a bit hazy in my memory but the amount was not large. I could see the government doing something small scale like that again.
But those rebates were added to the debt. This wouldn't be.
Cog wrote:Wait wut? How in the world would it not?
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