Helicopter money

[kurczak]

You see, you can't just give money to people because they would hoard them. Silly people creating financial reserves because they are afraid of the future or whatever lmao. Instead you give it to banks who ten aggressively market consumer loans to said people so they HAVE to spend the money they don't have on things they don't need so the people then have to work even more to pay off the outrageous interest that the banks can use on an even more aggressive marketing campaign.

Really, just trust us, get that credit card asap, it's in everyone's best interest.

 

[Jhessail]

Yup yup! And if they can't handle the repayments, it's their own fault but if the banks default on THEIR loans, then it's just a ****ty act of God and the government has to step in to bail the banks out.

 

[Calradianın bilgesi]

You see, you can't just give money to people because they would hoard them. Silly people creating financial reserves because they are afraid of the future or whatever lmao. Instead you give it to banks who ten aggressively market consumer loans to said people so they HAVE to spend the money they don't have on things they don't need so the people then have to work even more to pay off the outrageous interest that the banks can use on an even more aggressive marketing campaign.

Really, just trust us, get that credit card asap, it's in everyone's best interest.

this is mostly true except that QE lowers the interest rates in general. its aim is to make saving less attractive.
and 'giving money to banks' shouldn't be misunderstood. It's basically CB making a reverse auction to buy assets(=bonds) from banks. Increased demand for bonds makes bond holders more wealthier ofc but it's not just handing free money.

 

[kurczak]

I know, it wasn't a super-serious, academic post. I just returned from a late night screening of Fight Club and was triggered by the tone of the text. It just reads like "why, I shall be indubitably damned if I could possibly circumvent the old chaps in The City, I spent many a fine evening over a glass of port debating the solemn superiority of Horace's poetry with a few of them at Cambridge. * twirls moustache and sighs* "But, alas, that was before the Great War...."