This would be funny if it weren’t almost exactly what is happening. Only difference is that the Money is going to banks instead of employers.
Only question now is whether a decrease in the velocity of money (coupled with demand side weakness-shout out to the Keynesians amongst us) is enough to offset the increase in the supply so that inflation doesn’t blow the roof off.
As a side note, I’m convinced income inequality is going to really shrink in the next few years…wages will stay stagnant at the low end and unemployment will increase, but stock gains, bonuses, options, principal invesments, etc. will be absolutely hammered. The excesses of the past years have caused this and reality will set in.
