Well not exactly the economy but into the financial system where the banks will deposit it right back into the Federal Reserve and earn 25 basis points in interest. The banks will profit from the spread of borrow at zero and lending it back to the Fed at 0.25 basis points. In the meantime as the Fed puts $85 billion into the money supply, the middle class as an aggregate will grow poorer in terms of purchasing power. This money printing policy that is open ended will effectively kill the middle class. This tells me that the US economy is experiencing deflation on the assets we already own and don't need anymore of (housing, real estate) and the increases in goods we need to live (food, energy, real assets). Ladies and gentlemen we are experiencing Screwflation.
Throughout history, a country with a paper currency backed by the full faith and credit of its government is doomed to fail. Human beings are flawed. Our leaders are not perfect , they aren't divine, they definitely are not intelligent, they are people just like you and me. When one is in a position of power, power corrupts completely because we are ruled by our emotions. A nation in order to prosper and grow has to be governed by rational people who think completely rational. We cannot have policies that are based on emotions. We cannot have a private organization which its members are appointed by our elected officials to have control of our money supply. We are suppose to live in a open, free society with free markets were the decisions of millions of people are made and not a centralized small group of people deciding economic policy.
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