Where does the money come from?

Discussion in 'Economics' started by themarket, Dec 16, 2008.

  1. OK...here's a question that I have been wrestling with and I don't like the answers I am forced to give myself. I would appreciate the input of my stellar colleagues.

    If I remember ECON 101 correctly, recessions come and recessions go. W#hat usually sends them packing is an injection of cash into the system. Back in the stone age, cash was actually used. Then we became a society of plastic. That's OK, I guess...the economy didn't care...money is money. It was still cash flowing into the system to kick start a recovery. Then we tapped home equity to push liquidity and cash into the system. All is well. But...

    What do we do THIS time. Cash is gone...plastic is gone...home equity is gone. Where will the cash "spark" come from to get us out of this morass? Are the FEDS going to cut us a check every month? And if there is no longer any cash available for a stimulus to end the recession....then what?...DEPRESSION??? Please tell me I am wrong...PLEASE!
  2. You just print more or borrow it from foreigners.