[QUOTE="-Sun_Tzu-"][QUOTE="Dark-Sithious"]
Spitting trillions of dollars into the economy will increase inflation, thus the buying power of the averagee American hard earned money will be reduced. Maybe even the dollar will crash, who knows.
The various bailouts doesn't seem to have had a huge impact, and soon you will pay the price...
Dark-Sithious
If there is any inflation, it would coupled with lower employment (unless there is a supply shock). There isn't going to be a scenario of too much money chasing too few goods, especially with the lackluster amount of spending on the part of the U.S.If there is any inflation?
Well, first of all there is always inflation regardless of the bailouts, however you don't need a degree in economics to understand increased printing of money will reduce the buying power of the dollar. More money in circulation means less buying power, a pretty simple concept. Too look at how much the buying power of the dollar has reduced the last 10 years, you can look at the price of gold the last 10 years, the price has increased almost 400%
Considering the GPD of the United States is around 14 trillion if I'm not mistaken, and the bailouts are alreadyup to, or will be 12-13trillion dollars(if I'm not mistaken), then we are looking at a pretty vast increase in printing of money, and inflation will naturally rise.
And I have no reasons to believe they will stop spending money, and you are potentially looking at a hyperinflation, however it will take some time before you really feel the bang.
Me personally, think we are just beginning to feel the economic collapse, by the end of this year it will be a total disaster, god help us all.
If you have any money, I'd reccomend buying gold. Regardless of our finicial situation the value of gold, always stands the test of time
You have a very superficial understanding of economics. The enemy right now is deflation, and that is why the Fed has begun implementing quantitative easing to reflate the economy and avoid substantial deflation. You can pump all the money you want into the economy, but it won't have a very high velocity (and the total money supply wouldn't increase) if the banks aren't lending which means a negative inflation rate (i.e. deflation). If and when the banks start lending again, yes there may be very moderate inflation, but that will be coupled with economic growth and lower unemployment as the economy will be moving towards full output. 
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