Meanwhile, the US government did its part, passing a massive stimulus bill – pumping trillions of dollars of borrowed money into the economy. Of course, the Fed monetized a big chunk of that debt via QE infinity. So, in effect, the federal government joined forces with the central bank to pump trillions of dollars out of thin air into the economy.

To sum up, the primary response to effectively shutting down the economy was to simply create new money and hand it out. Viola! Problem solved. Despite the fact nobody was working, services weren’t being provided and products weren’t being produced, it was OK because everybody still had plenty of dollars in their pockets.



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