by Dr. Jeffrey Lewis, Silver-coin-investor:
Many regard the risk of inflation as low, since the Fed’s money distribution or credit mechanism is limited by how the banks decide to lend. While credit worthy businesses and consumers are still de-leveraging, the transmission mechanism will eventually come. This will occur, for the most part, thanks to the Treasury.
So then how can the Fed push money into the economy?
The government has no real limit on the amount they can borrow and spend. They have a debt limit but they increase it any time they get close – so it is not a real limit.
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