On The Impossibility Of Helicopter Money And Why The Casino Will Crash | Stockman

And that is why the Wall Street gamblers are so desperately hoping for helicopter money. The fact is, the Fed is out of dry powder via the "extraordinary" measures it has employed since the financial crisis.

...

The only thing different technically about "helicopter money" policy is the suggestion by Bernanke and others that the treasury bonds could be issued directly to the Fed. That would just circumvent the dwell time in dealer (or "investor") inventories but result in exactly the same end state. In that event, of course, Wall Street wouldn't get the skim.

...

But that's not the real reason why helicopter money policy is so loathsome. The unstated essence of it is that our monetary politburo would overtly conspire and coordinate with the White House and Capitol Hill to bury future generations in crushing public debts.

They would do this by agreeing to generate incremental fiscal deficits---as if Uncle Sam's current $19 trillion isn't enough debt----which would be matched dollar for dollar by an increase in the Fed's bond-buying or monetization rate. That amounts not only to teaching children how to play with matches; it's tantamount to setting fiscal forest fires across the land.