[OutsiderFan]

I'd love to know how many jobs are being propped up only by borrowing from the Federal Government, in the form of direct Fed Asset purchases, that should never ever be allowed, IMO.

Why shouldn't the government be allowed to support jobs by borrowing?

BC

I have no problem with the Federal Government borrowing money to spend on things when there are bond buyers to finance the spending or it raises taxes to make people realize nothing is free. My issue is when the Fed creates money out of thin air to be that buyer. It's even worse when the Fed buys up other assets, like mortgage securities and who knows what else.

Investing is suppose to create winners and losers. That's what leads to responsible long-term behavior and keeps markets tied to reality.  What if the Fed goes and buys up all the over leveraged fracking debt?  It's creating money that drives down the value of yours, so investors who made dumb bets on energy can't lose.

Now for sure, I agree with supporting the Air Line industry.  It's as integral part of economic infrastructure. But, again, that should never be done by the Fed printing money. It should be done by raising taxes, cutting spending other places, and selling more treasuries to investors. Just saying "oh, the Fed will print money and we'll use it to support airlines (and other stuff) so we don't have to make hard choices," is lazy and totally irresponsible.  It's like putting led pipes in a school because you couldn't tell the truth about how much it would cost to have non-led pipes in it. Sure, it might be expedient in the near term, but the long term cost will be tremendous, all because of an ability to face unpleasant reality in the present.

The Fed, the Executive Branch, and our Congress have failed to protect us in spectacular fashion, even while mortgaging our futures. We've basically run on a treadmill for 4 months and not only made no progress, but made things worse for ourselves.  It's like doing the work to get in shape and being more out of shape after doing it. It's hard to even comprehend how absurd this is.

[OutsiderFan]

I'd love to know how many jobs are being propped up only by borrowing from the Federal Government, in the form of direct Fed Asset purchases, that should never ever be allowed, IMO.

Why shouldn't the government be allowed to support jobs by borrowing?

BC

I have no problem with the Federal Government borrowing money to spend on things when there are bond buyers to finance the spending or it raises taxes to make people realize nothing is free. My issue is when the Fed creates money out of thin air to be that buyer. It's even worse when the Fed buys up other assets, like mortgage securities and who knows what else.

Investing is suppose to create winners and losers. That's what leads to responsible long-term behavior and keeps markets tied to reality.  What if the Fed goes and buys up all the over leveraged fracking debt?  It's creating money that drives down the value of yours, so investors who made dumb bets on energy can't lose.

Now for sure, I agree with supporting the Air Line industry.  It's as integral part of economic infrastructure. But, again, that should never be done by the Fed printing money. It should be done by raising taxes, cutting spending other places, and selling more treasuries to investors. Just saying "oh, the Fed will print money and we'll use it to support airlines (and other stuff) so we don't have to make hard choices," is lazy and totally irresponsible.  It's like putting led pipes in a school because you couldn't tell the truth about how much it would cost to have non-led pipes in it. Sure, it might be expedient in the near term, but the long term cost will be tremendous, all because of an ability to face unpleasant reality in the present.

The Fed, the Executive Branch, and our Congress have failed to protect us in spectacular fashion, even while mortgaging our futures. We've basically run on a treadmill for 4 months and not only made no progress, but made things worse for ourselves.  It's like doing the work to get in shape and being more out of shape after doing it. It's hard to even comprehend how absurd this is.