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700 Billion, here, 700 billion there, 450 billion over there, pretty soon your talking real money! WOW!! Is the good ole U.S of A. being sucked downward into a giant economic hole it won't be able to crawl out of?Some say that is what is happening as the American government prints more money to stimulate their faltering economy. The practice of "Quantitative Easing" (printing more money for circulation) has certainly been tried, on a smaller and more local scale, in Japan during the 90's. It lead to stagnation and at least a 10 year drag on their markets. Will this, much larger printing be different for America, (and the world) markets.
Are the Keynesian economists who have advocated this easing, right, or are they just groping in the dark for an answer to what is the equivalent of a financial nuclear blast! It may be possible to vacuum up all of the fallout, theoretically, but theory and reality don't always fit.
Maybe there is no vacuum big enough to suck all of the Derivatives fallout (heretofore referred to on many sites as the "toxic assets"). After all, with Derivatives trading last year, at almost 4 times the "total" value of "all" stock and bond markets worldwide, (from which they originally "derived" their value) it appears the vacuum required for this job, has never been built before.
Maybe the Keynesians feel they are building it now, with this "massive" flood of digital money! Hopefully, their vacuum won't suck the entire global economy into the abyss.
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