Top Gun

The Fed's Bubble Trouble

The debt needs to be paid, as long as there is huge (non-treasury) debt, excess cash in the system will flow to return principal to creditors rather than to inflation. The Fed will re-inject the debt it acquired as this excess is absorbed. Very complicated, and I'm sure some bright Fed PhD has modeled the whole thing.

Increased gold prices are one way of increasing the money supply as cash is changed for gold. What we really need is for every billionaire to give 10% or so of their worth to needy people today, not as an institution. They could easy immediately put $10-20 billion back into circulation! No impact on our federal balance sheet.