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To: Les H who wrote (194546)4/2/2009 9:06:59 AM
From: Think4YourselfRespond to of 306849
 
So the fed is printing money like mad, causing inflation, and then using some of it to buy paper based on the money it is printing in order to reduce the inflation problems caused by their printing of the money in the first place?

Is the below example correct?

Let's say that they want 1 trillion dollars to work with. They know it will cause inflation. They print up 2 trillion dollars and use 1 trillion of it to offset the inflation by the printing, leaving them with much smaller inflation than if they had just printed the 1 trillion.

Why do they get away with it but Madoff goes to jail? Seems like a double standard.