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<p>[QUOTE=&quot;JoeSmith, post: 739375, member: 18021&quot;]I don&#039;t think the tarp money was ever in circulation, which is why the economy hasn&#039;t been stimulated.&nbsp; The theory is that the more cash and checking account deposits there are (the money supply), the more inflation there will be.&nbsp; It assumes that if you get some extra money you&#039;ll spend it.&nbsp; But you might not spend it, you might use it to pay down your debts.&nbsp; Some banks didn&#039;t need or want tarp money, but they were forced to take it.&nbsp; The policy of credit garvage is ostensibly suppose to stimulate the economy.&nbsp; But when people borrow money to buy things, they have payments to pay it back.&nbsp; Because they&#039;re making these payments they have less money to spend.&nbsp; Take cash for clunkers.&nbsp; Its been hailed as a rousing success because new auto sales went up one month.&nbsp; But the people that bought a new car with cash for clunkers are people that had a running car that was paid for, and now they have a new car with payments.&nbsp; This is suppose to stimulate the economy.&nbsp; If the easy credit worked, and people did borrow and spend more, there would be inflation.&nbsp; The problem is that people are in debt.&nbsp; The solution is for them to get further in debt.:desk:&nbsp; No matter, the end result is the same, the dollar gets weaker, gold goes up.[/QUOTE]</p><p><br /></p>

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