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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: el_gaviero who wrote (5181)	4/28/2004 3:34:42 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

If the FED has dollars, and carte blanche to spend, it should be able to find a way to get those dollars in circulation, and stop a deflationary spiral. Japan tried and failed. Why should we not fail? Short of giving away money to pay down debts, It will ultimately fail IMO. M

To: el_gaviero who wrote (5181)	4/28/2004 4:01:43 PM
From: NOW	Respond to of 116555

well of course the fed can indeed resort to helicopter drops. There is no doubt that such as thing would make dollars worthless and hence is inflationary in that sense. But will they do that? Who do they finally represent: debtors or creditors? dont tell me they work for the governemrnt. that isnt in fact true by their charter. As HEinz says, they will not want to print themselves out of business. Shor tof helicopter drops, what else can they do? They can print all they want, but you still need folks to be able to borrow.