Absolute Monetary Insanity: Fed's Mester Says Helicopter Money "The Next Step" In US Monetary Policy
Think "helicopter money" is/will be confined only to Japan, which has been sending conflicting trial balloons about this unprecedented next step in monetary policy for the past two days (first Japan's Senkei reported that the government will be adopting “helicopter money” followed by a government spokesman denying the report, then followed by a separate Bloomberg report about a 10T yen stimulus plan, the concluding with Abe advisor Koici Hamada saying that "boosting fiscal and monetary stimulus at the same time would be effective" in Japan)? Think again.
Speaking overnight in Australia, the Fed's Loretta Mester said "helicopter money" could be considered to stimulate America's economy if conventional monetary policy fails.
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They just want to keep the party going for themselves. The future be damned.
if the FED (and for those who do not know it: the FED is a PRIVATELY owned entity) hands it out for free, it confirms, what 8 years of near zero percent interest policy already hinted at: FIAT currency is almost without value. "Helicopter money" is the unspoken declaration of bankruptcy of the central banking system.
Well said. Everyone knows it, though few acknowledge this fact publicly.
Here's the reason helicopter money (quantitative easing, aka QE) works: if the USA inflates its currency by creating a bunch of new money and giving it to its businesses or citizens, people outside the USA who are holding US dollars will find that their dollar isn't worth as much. QE transfers value from outside the country to inside the country.
But the dirty secret is, everyone is thinking about employing QE to stave off their country's upcoming recession. And if everyone pulls this little trick at once, it won't work for anyone at all!
Very nice, Thank you!
madness, madness
Of course they'll use it to water the leaves of the economy, not the roots.