As I said when bamm was pres, it’s not a stimulus. It will deflate the value of money, causing all prices to rise, giving the illusion of economic recovery.
”As I said when bamm was pres, it’s not a stimulus. It will deflate the value of money”
The value of money to whom? Debt-as-money has some peculiar math.
Credit sellers tell me I can spend $125 000 tomorrow. Does that $125 000 have value to me? Or to them?
Any stimulus which increases the people’s indebtedness TO THE FED makes the long term worse.
Say I spend my $125 000 of credit card money TODAY and our theoretically sovereign government cancels my debt tomorrow.
That’s the same as sending me 125 000 FRNs, but UNLIKE sending me FRNs, no debt is created, rather, debt is extinguished.
Sucks to be Goldman Sachs, but, TBH, they have it coming.