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Comment: Its a question of corruption

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Its a question of corruption

The newly created money can either try make its way to the public via the banks or go direct to the people.

The only reason the Fed issues money through the banks is to give them an inflationary advantage known in economics as the Cantillon effect.

The reality is the Fed should not be empowered to create anything monetary in the first place, but the interesting facts here are that the Fed is choosing an inferior, yet more corrupt way of distributing the money according to their own economic theories.

You often hear Fed economists discussing the liquidity trap and needing to get banks to lend, well then why not just bypass the banks? The answer is simple... corruption and perhaps also a lack of belief in the actual theory of artificially propping consumer demand.