The Fed can create hundreds of billions or trillions of dollars with a click of a computer keyboard, an unlimited amount, what former Fed chairman Bernanke earlier called helicopter money.
It’s been dropped in large amounts on Wall Street (so-called QE), not on main street where vitally needed to stimulate economic growth.
QE helps banks, markets and investors. Boosting aggregate demand requires putting money in the pockets of ordinary people who’ll spend it for essentials and discretionary things.
Years of dropping money on Wall Street through near-zero interest rates and QE boosted asset valuations to bubble levels while ordinary Americans got force-fed austerity when stimulus was needed — along with high unemployment and underemployment, claims otherwise state-sponsored mass deception.
What benefits investors fails to help most Americans. What’s needed is large amounts helicopter money dropped on main street — omitted from the Trump regime’s guidelines.