[quote=kewp]The 70’s prove that the Fed can overpower recessionary deflation and cause something worse. Oddly, I hope I’m wrong.
You almost certainly are.
The dominant economic trends are all deflationary. All the Fed printing is doing is keeping the banks *barely* operational. There isn’t enough excess liquidity available for price/salary inflation.
All our past over-consumption basically amounted to money-burning. Foreclosures, bankruptcies, unemployment, credit card defaults etc. are all the equivalent of dollar destruction and ultimately deflationary. The Fed printing isn’t even close to keeping up.
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Net new money isn’t created unless its borrowed. If no debt is in involved then its simply cash to cash.
The Fed doesn’t print money. It sets conditions to influence how much of it is borrowed. Its the borrowing that expands the money supply.
Low rates won’t help anything if people are not willing to borrow it.
