You've heard of 'hydraulic fracturing' e.g., the use of high pressure fluids into the ground to release hydrocarbons for energy use. In 2011 I coined the phrase "monetary fracking" to mean the use of massive amounts of monetary liquidity by the Federal Reserve injected deep in the bowels of our ailing economy to release the true economic engine of the American consumer. I observed the Fed printing and pumping it directly to the banking system with the hopes that the banks would lend it. But alas, our credit had been too severely damaged, our assets depleted by the financial whores of Wall Street, our savings and retirement destroyed; in effect, we were devastated and decimated So instead of "bailing out" the banks I felt that unless we bailout ourselves we will never be able to buy anything again. I pondered - how can we get the Fed to directly remunerate the millions of us directly affected by the criminal acts of the perpetrators? It would be too politically incorrect to just give money to the people - that would never fly. But how about utilizing the American way? A gigantic class action lawsuit to compensate the victims Only the Fed can create enough dollars to compensate the victims. They will print $3 trillion and distribute it through the IRS to those who can prove bankruptcy, loss of job, loss of business, loss of house, foreclosure, etc. The resulting funds in the economy will pump-prime the system to create demand and we will buy things, save, pay off debts, et al.
Monetary Fracking is where the Fed prints dollars and sends it to the IRS. The IRS checks their records to see if (1) I owe taxes and (2) if I am an alien and (3) if I was financially damaged during this Great Recession. The IRS then sends $400,000 to me by check or direct deposit. I replenish my savings and retirement accounts, payoff my house, buy a new 2014 Hyundai Sonata, re-start my business. My life is back to normal with gasoline now at $5.00 a gallon - but I don't care, I am whole again.
by jayparker1 August 17, 2013