3 ms·

There still doesn't seem to be a "massive wealth transfer to the rich" in there

• smokeyj 16y ago
  Previous comment was explaining inflation doesn't help the poor, this is pretty non controversial. The transfer of wealth would be the fact that we bailed our companies that made stupid risks because they were greedy, and the only way to fix it was to give them gobs of cash. These gobs of cash are simply printed, contributing to inflation, while keeping greedy banksters employed. We saved the wealthy while subjecting the rest to inflation.
  • nerfhammer 16y ago
    1) The bailout consists of loans 2) When a loan from the Fed is repaid, the "printed" money ceases to exist, so slightly more money is ultimately destroyed. The "gobs of cash" are not "simply printed". 3) There is no evidence of either price or monetary inflation actually occurring, as both price levels and the money supply tends to contract along with economic contraction 4) "bailed our companies" != wealth transfer to the rich
  • smokeyj 16y ago
    Printing dollars is figurative, I'm aware you don't have to print money to add imaginary money to an imaginary money supply, we have computers. Printing money is symbolic of more money going after less resources because of fiat currency (you can't print a loaf of bread). If banks got more money to go after less resources, this came at the expense of someone elses purchasing power at the time. Nothing is free, Bernanke didn't find perpetual energy, and "printing money" has its effects - namely being the business cycle.