Ben Bernanke gives his Fed’s QE efforts credit for creating 2 million jobs. The man’s IQ notwithstanding, what a profoundly presumptive, naive, and/or, quite frankly, an insulting-to-our-intelligence statement. But let’s say, naively, that he’s correct – that those QE $’s sitting [stubbornly] in bank excess reserves somehow create jobs. Well then great! Let’s keep it up. It’s a no-brainer! If all it takes is the creation of 2 trillion in new dollars to create 2 million jobs, we should do that till the cows come home. At that pace ($1 mill/job), another $5 trillion or so and we’ll have won back all the jobs lost since the start of the Great Recession.
And, I suppose then, that as long as all that cash remains in banks’ excess reserves – as long as they never actually push it into the economy – we needn’t worry about inflation.
Like I said, insulting to our intelligence…