OK so by your logic everyone in my scenario that would have received the cash could instead create pieces of paper that are promises to pay back the money and s

OK so by your logic everyone in my scenario that would have received the cash could instead create pieces of paper that are promises to pay back the money and sell them to the fed. Would this still constitute an "asset swap" that doesn't create inflation. The problem is that new money was created to buy relatively worthless assets, increasing the money supply and decreasing the relative wealth of dollar holders to those that the fed bought "assets" from. Once the banks spend this money, the latent inflation occurs and prices increase, making everyone that had dollars poorer relative to those that received the fed bailout.