I agree with you... good explanation.
Isn’t it true, though, that at least right now, the banks have these new dollars in their reserve currency, and either won’t lend it out, or is prevented from lending it out?
Thus, at least in theory, it is not inflationary. If that is all the case, then the FED is thinking they are so adept, all they have to do is snuff out these new dollars when inflation starts to pick up.
Thus, they get to inflate the money supply without us seeing inflation, and then contract it.... IF they are quick enough.
Hmmmm... the hole in this is... I know they are borrowing 1+ Trillion, and spending it...
It’s still inflationary. That value is still being “teleported” (got a better term? please?) out of your pocket/account and into the government’s check-printing department. That cash may sitting in reserve, even prevented from going anywhere, but when those vaults are finally opened there won’t be much left therein.
I’ll have to think about the “snuffing dollars” process. You’re on to something there.
How is that creating jobs.
Doesn't the money have to be moving around to create jobs?