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The stimulus check going to millions of people is also part of the Trillions they are spending. They are printing money at an unbelievable pace and handing it o

• arcticbull 6y ago
  They aren't really "printing" money, for each dollar created a dollar of liabilities is created. Eventually, the positions will be exited, the liabilities will be closed out and the money 'created' will be destroyed. At least, that's the theory. The stimulus checks are probably the most effective weapon they have in their war chests, as people at the bottom of the food chain are the most likely to spend that money immediately on essentials. This induces economic activity, it increases the velocity of money, and it helps to counteract the natural deflationary pressures a recession creates.
  • alexmingoia 6y ago
    Those liabilities don’t need to be honored, that’s why central banks exist and why they create money. The Fed can produce as many reserves as it wants, at any time, out of thin air. And it does! Lending comes first, and reserves are simply created by the Fed until banks have enough. That’s literally their job, and it’s how the money supply grows. By the very nature of fractional reserve lending, banks cannot honor their contracts, requiring money printing to prevent bankruptcy.
    • giantg2 6y ago
      Money computer goes beep boop. Money printer goes brrrrr.