Courtesy of Mish.
What is Helicopter money? Can the Fed or ECB just drop money from the sky?
The answer is no, at least legally. As I have explained before, the Fed cannot provide capital, but it can provide liquidity.
Although central banks show little regard for the rules under which they operate, they have not resorted to”helicopter money” in any real sense. But they sure have created bubbles.
Popular Misconception
The above image (and hundreds of similar images), are often used to depict “helicopter money”.
It’s a popular misconception of what’s really happening.
John Hussman discusses the above ideas in his latest weekly commentary Speculative Extremes and Historically-Informed Optimism.
