What Printing Money Can Do

By The Daily Dish

Bears

Jack McHugh on yesterday's rally:

I worry less about the monthly squiggles in the economy than I do about how we pay for everything in the out years. It may all be a bit confusing, but that’s what printing money tends to do. The excess liquidity tends to find a way into the asset markets, and it gives everyone an ersatz sense of confidence.

(Chart by Doug Short)

This article available online at:

http://www.theatlantic.com/daily-dish/archive/2009/06/what-printing-money-can-do/201051/