This goes to show that you can’t cheat the market.More dollars is going to lead to massive inflation.No dollars will lead to deflation(depression style).It’s a no-win situation we’re in now.
That’s only kind of true. We are inflating an unsustainable bubble that will eventually pop regardless of whether we inflate or not. Yes if deflate now it will hurt like hell and the economy will probably go into a deep recession, but if the government stops manipulating interest rates and printing money (along with keeping taxes and spending low and deregulating the market in general), the market will correct and recover in a relatively short amount of time. The Depression was a market correction (the problem being created by the government), but it was government’s subsequent policies to “help” people that made it last for so long.
Ultimately, we need to stop inflating. In the long run deflation will be a win, though in the short term they’re both painful.