[GOPJ]

Also, he said, it should create more money to offset the collapse of credit and then rapidly pull that cash out of the system when inflation emerges. The government would have to be very nimble in the timing of such moves, he said.

If we could pull the money out at exactly the right moment, we'd be soooooo good we'd never have gotten in this mess in the first place...

[CurlyDave]

If we could pull the money out at exactly the right moment, we'd be soooooo good we'd never have gotten in this mess in the first place...

OK, I understand how the government puts more money into the system, just print it and spend it.

But, how do they take money out at any time, right or wrong? I always thought that was called deflation, and if you thought inflation was bad, deflation causes more pain.

[Leisler]

The 1907 financial panic was over in a month.

In response the Federal Reserve Act was done.

Now we still have panics, they are worse, cost more and last longer. Recessions last years and depressions decades.

Its almost as if the government was involved.

Thank God we have the Federal Reserve, eh?