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To: Toddsterpatriot
It does add new money to the system. New money is a stimulus.

You don't really have a degree in economics, do you?

And just how many of those with economic degrees predicted the current trouble?

New money is a stimulus to what? Inflation? That's the point of view of the Monetarians, and I think the Austrians.

199 posted on 01/29/2009 4:02:16 PM PST by slowhandluke (It's hard work to be cynical enough in this age)
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To: slowhandluke
New money is a stimulus to what?

Buying. When I get money, I buy things with it.

When the Fed buys securities from a primary dealer, the primary dealer has an incentive to buy things with it. Or lose interest on the cash.

200 posted on 01/29/2009 4:06:57 PM PST by Toddsterpatriot (Havoc has been back since September. Or was it April?)
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