[OutsiderFan]

The news today that the Fed will stand ready to purchase an unlimited amount of U.S. Treasuries and Mortgage Backed Securities challenges my belief in our economic system.

If the Fed can print money to give to banks and the government without limitation, why the F can't we print our own money? I mean they are literally devaluing the money we do have. The only way to solve this crisis is to tax the hell out of people who have money already. Otherwise, we face runaway inflation, and quite possibly, stagflation. Stagflation gives you all the ugliness of inflation with an accompanying economic contraction.

The inflation is a 2021 or 2022 problem.   A stock market crash coupled with the halt in main street would be a March 2020 an unprecedented disaster that would lead to panic, death and economic despair for a decade or more.

The people in the Fed understand the downsides of easy money, but if the biggest problem associated with preventing a global collapse is tackling stagflation in 2022-2025 I am confident we can address that problem.

Until a vaccine is in place there will not be a lot of inflationary pressure no matter how much money is pushed into the economy.   After a vaccine there will be inflationary pressure, but that's for a different time.

Schools are closed.   Restaurants are closed.   Hotels are in economic ruin.  The airline industry is collapsing.   The list goes on and on.   Social distancing will keep most of those economic issues in place for months.   Flood the zone with money trusting that the economic problems it will create in 2021 and beyond will be things governments are more confident they can tackle.

A well-reasoned post. Hopefully we will give ourselves political leadership that can inspire us to sacrifice and also do great things in the aftermath.

[OutsiderFan]

The news today that the Fed will stand ready to purchase an unlimited amount of U.S. Treasuries and Mortgage Backed Securities challenges my belief in our economic system.

If the Fed can print money to give to banks and the government without limitation, why the F can't we print our own money? I mean they are literally devaluing the money we do have. The only way to solve this crisis is to tax the hell out of people who have money already. Otherwise, we face runaway inflation, and quite possibly, stagflation. Stagflation gives you all the ugliness of inflation with an accompanying economic contraction.

The inflation is a 2021 or 2022 problem.   A stock market crash coupled with the halt in main street would be a March 2020 an unprecedented disaster that would lead to panic, death and economic despair for a decade or more.

The people in the Fed understand the downsides of easy money, but if the biggest problem associated with preventing a global collapse is tackling stagflation in 2022-2025 I am confident we can address that problem.

Until a vaccine is in place there will not be a lot of inflationary pressure no matter how much money is pushed into the economy.   After a vaccine there will be inflationary pressure, but that's for a different time.

Schools are closed.   Restaurants are closed.   Hotels are in economic ruin.  The airline industry is collapsing.   The list goes on and on.   Social distancing will keep most of those economic issues in place for months.   Flood the zone with money trusting that the economic problems it will create in 2021 and beyond will be things governments are more confident they can tackle.

A well-reasoned post. Hopefully we will give ourselves political leadership that can inspire us to sacrifice and also do great things in the aftermath.