I think of this more like what the FED did during the worst early phases of the downturn: Give money to friends to freely spend without ever paying it back.
Somewhere, I have a FR article post talking about this. They found friends who said, “I will gladly spend the FED’s money if they gave it to me,” and they got it.
The reasoning was that the FED is prohibited from directly buying products, services, and stocks, but the FED has no prohibition from giving grants to people so that the friends “help stimulate the economy.”
Completely disgusting thinking. It only went to libs.
The Federal Reserve has succeeded in doing one thing well: convincing Americans that they really are trying to improve economy, when in fact they are focused primarily and almost solely on the success of the banks and the banking system. If actions taken to save the banks destroys people’s savings, pensions and the value of the US currency in order to prop up the banks, OH WELL!
Shakespeare should have instead written: “First, we kill all the banksters, THEN we kill all the lawyers!”
As I recall, they ‘dumped’ $85 billion dollars of air money into the economy (parts of it anyway) for the first 5-6 years of Obama’s tyranny. Half in T-bills that supposedly ‘legitimizes’ the debt, and the other half in Mortgage Backed Securities MBSs in the stock market. Basically, 6 Trillion Dollars of it.
Only a true-believer Keynesian could invert the definition of money. To them, money can magically create goods and services instead of stand as a measure of goods and services. This idiocy can only be achieved when a government allows a fiat money system. Once that’s done, it is in the short term political interest to game the currency. This will work until the point it doesn’t.
The Federal Reserve is the foundation of the progressive-left nanny-state. With unbacked, fiat money, massive debt and manipulated interest rates in the hands of political central planners - Fed.gov and all their cronies will never be denied funding. In turn, this has created now 3 generations of Americans who expect government to be their sugar-daddy, and vote that way.
Until conservatives understand that, they will continue to watch as the country slides away.