tallpilot

How are they going to do it? Start charging banks for excess reserves to encourage them to lend or direct payments? Do they have the legal authority for direct payments? Will banks lend to uncreditworthy borrowers or would they choose to inflate asset prices instead?

The Fed has been trying to create inflation for a long time. They keep failing because the cost of servicing the existing debt eats up all of the additional M2 they create.

I don't like what the Fed is doing and I don't like the trajectory of government spending but I'd still bet on deflation in the intermediate term.