Weather borrowed or printed, the fact is, Trillions of dollars are being forced into the economy from "thin" air.
What is going to happen when those Trillions of dollars start circulating and chasing the exact same amount of goods, products, and services that exist now?
If you think this will not cause massive inflation, please explain why? Maybe, not short term, but in the long run something has to give - doesn’t it?
We can raise the interest rates later if need be. Deflation is much scarier because everybody will put off buying anything because it will be cheaper later. Right now we need a little inflation because that cause people to buy things now because they will cost more later.
Plus we can pay China back with smaller dollars.
I doubt we have put more into the economy than what has vanished into thin air in house prices, and stock portfolios.
Yep. Durn right I’m worried.
This is correcting a massive deflationary drop in Demand.
I vaguely envision taking a wheel barrow full of money to buy a loaf of bread and having someone steal the wheel barrow because it will be worth more than the money.
Yes. It’s more of a tourniquet to a gushing wound than a surgical solution. Surely they’ll only do this once. If they keep doing it, are dollar won’t be worth squat.
Some people just love to worry. In fact, they’re probably worried that someday they won’t have anything to worry about.
Unfortunately, it’s similar to some of the side effects of some life saving medicines - they’ll never be as bad as the alternative.
Presently, our economy needs some serious jump starting - as far as the possible future consequences, we’ll cross that bridge when we come to it.