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charles hugh smith-Deleveraging and the Futility of "Printing Money"
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Let's say the Fed "printed" $10 trillion and threw it into the economy. That doesn't quite replace the $11T in wealth which was destroyed in the "global financial crisis"/credit-housing bust of 2008. It is less than half the increase in net worth households experienced from 2002-2007, and it is less than half the expansion of debt in the entire U.S. economy, which doubled from $25T in 2000 to $52T in 2008.
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If debt hadn't doubled since 2002, then that slide back down might not be so painful. But all that "free money" was leveraged into more debt.
So even if the Fed "prints" another $2 trillion, or $4 trillion or $6 trillion, that number is overwhelmed by the credit/debt/wealth that is being destroyed by deleveraging.
You want to create inflation? Then print $10 trillion and distribute it to the bottom 90% of U.S. households who collectively own a mere 7% of the nation's financial wealth. That might do it, but I'm not so sure even that would do much.
