well not technically printing money, they are creating credit, but you knew this I hope. We will create another trillion (again) this year and give the money interest free directly to the banks who are then supposed to loosen lending. That's our present economic plan.
How substantial is the relationship between the money supply and inflation?
Devaluing the dollar hurts the poor and middle class the most. It's a regressive tax. To believe increasing the money supply creates wealth means the people in charge feel we can create real wealth from "thin air".
Inflation has actually been quite low the past couple years. I think the reason the Fed has continued QE is because they aren't seeing inflation show up.
The IMF, China, Russia and many other countries are making a lot of noise to replace the dollar as the world's currency. As it stands now we are able to borrow from ourselves, this changes. We will actually have to pay back the created money. Imagine right now if California could create their own money to borrow from themselves..
Surely you knew of QE3 didn't you?
Pay back the created money?