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Politics : The Obama - Clinton Disaster

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To: GROUND ZERO™ who wrote (8532)3/6/2009 5:54:45 PM
From: DuckTapeSunroof  Read Replies (1) of 103300
 
Re: [We sure will unless the excess liquidity gets mopped-up before then.] "How would that be done? There's no way to get the genie back inside the bottle..."

Of course there is.

Central Banks do it all the time!

They INJECT more liquidity into economies (during the down part of business cycles), by such expedients as lowering interest rates... and they WITHDRAW LIQUIDITY by following the exact opposite policies: raising interest rates, selling bonds (to mop up currency), etc.

S.O.P. for Central Banks --- that's *exactly* what they are chartered to do.
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