The basic idea is that giving each household, regardless of
wealth or income, $1 million each will spur consumption so mightily that
inflation will skyrocket.
The Federal Reserve has been trying to boost the official
inflation rate for eight long years, and apparently patience with
current policies is finally wearing thin. Rumor has it that the Fed is readying a new "nuclear option": distributing $1 million to each household in the U.S.
The Fed can create any sum of dollars it chooses with a few digital keystrokes.
An unidentified source at the Fed reported, "The handheld calculators
at the Fed only have 12 digits, so there's a bit of confusion about how
much money we'll have to create to give $1 million to all 100 million
U.S. households. The consensus answer is $100 trillion, but they're
putting the numbers into the current econometric models to verify this."
The basic idea is that giving each household, regardless of wealth or income, $1 million each will spur consumption
so mightily that inflation will skyrocket. "What the Fed has wanted for
eight long years is to generate an expectation of inflation," our
source explained, "so that consumers will spend whatever cash or credit
they have now, knowing that it will buy less in the future."
Once people expect substantial inflation, they realize the best
course of action is to borrow as much money as possible now before
interest rates rise--an inevitable consequence of inflationary
They also realize it's best to buy whatever you can now before the price rises next month.