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To: Elroy Jetson who wrote (6505)	11/2/2002 8:06:33 AM
From: JRI	Read Replies (1) \| Respond to of 306849

<Fed could print> How would that work? Wouldn't that be automatically inflationary (there is no free lunch)

To: Elroy Jetson who wrote (6505)	11/2/2002 4:02:17 PM
From: Wyätt Gwyön	Respond to of 306849

but the Fed could and would if they thought it was necessary to save the economy from becoming Japan...They would merely print the money needed to buy the bonds, they don't need to be an economically rational investor. they may not need to be rational, but that does not mean their actions are without consequences. the biggest consequence could be a wholesale retreat from the dollar and US securities on the part of foreigners. considering our record trade deficit and record foreign net investment, such Fed actions could be quite risky.