Buying Quote by Gary Shilling
“One of the things I think is very likely is that with the prospects of robust fiscal stimulus in response to voters mad as hell, the Fed is going to be in there with helicopter money. In other words, they're going to be buying whatever the Treasury issues. They're not going to, in effect, advocate strong fiscal stimulus and then not finance it. And that's helicopter money.”
About This Quote
Robust fiscal stimulus may lead the Fed to directly fund Treasury debt, effectively creating “helicopter money,” which blurs monetary‑fiscal boundaries.
In simple terms: Fed may fund Treasury, creating helicopter money.
Watch for fiscal‑monetary overlap.
Themes
Mood
Type
When to use this quote
- government debt
- public finance
Key Concepts
Questions to Reflect On
- What safeguards exist?
- How does this affect markets?
Such financing can fuel inflation.