General Question

johnsolomon's avatar

How much of the stimulus package will be from a printing of new dollars put into circulation? and how much of the package will be from other forms of financing not involving the printing of new dollars?

Asked by johnsolomon (8points) February 7th, 2009
Observing members: 0 Composing members: 0

6 Answers

MrItty's avatar

putting physical dollar bills into circulation has absolutely nothing to do with stimulating the economy.

aprilsimnel's avatar

Printing more money would have a deleterious inflationary effect. Just research what happened in the Weimar Republic era of Germany history, when people had to tote marks around in wheelbarrows to buy a loaf of bread. No one’s going to make that mistake again.

johnsolomon's avatar

HOW MUCH OF THE STIMULUS PACKAGE WILL INVOLVE THE USE OF NEWLY PRINTED MONEY? IF THE ANSWER IS NONE, WHAT FORM OF FINANCING WILL THE 600 TO 800 BILLION BE IN? DOES THE GOVERNMENT JUST TAKE AWAY THE BAD DEBT OF A BANK AND PUT IT INTO THE NATIONAL DEBT? IN THAT CASE THE MONEY SUPPLY WILL NOT BE INCREASED, ONLY THE NATIONAL BEBT WILL BE INCREASED BY THE AMOUNT OF THE STIMULUS. IF THE NATIONAL DEBT IS 11 TRILLION, WILL ANOTHER 600 BILLION MAKE THAT MUCH OF A DIFFENCE ON INFLATION?

MrItty's avatar

1) learn to turn off your caps lock key.
2) Go read a book on economics. Or at least a pamphlet.

houseofknightsandladies's avatar

Who knows? Just means inflation for the working class and middle class.

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