You say, “people can get jobs somewhere else” - but can they? And if they do, will they have the same income and health care as before?
The system is perfectly constructed to bind employees to companies who are prepared to treat them as serfs or disposables.  Fear of losing your job is bad - but not nearly as bad as losing your job and your medical insurance!
It’s much like the old days where you worked for “the man” in his company town, and if you got fired for any reason, you not only lost your job but your house as well!
This kind of thing eventually leads to bloody insurrection, almost every time.

As I understand it, Central Banks are ultimately backed by taxpayers via Treasury. Therefore, buying company bonds or stock seems to amount to nationalisation by stealth, which must end in central planning. The cronies get those central planning jobs.

Demand does not automatically exist because production assets have been reallocated.  See Progress Dollars from the Production Parabola.

I agree.  US form of capitalism was dynamic, although a bit harsh for my taste.  Better to strengthen the safety net of workers, however, than try to bail out companies.  I share your fear that we are headed towards a Japan-like zombification.

The only semi-rational explanation I’ve heard is that all of this stimulus, both Fed and fiscal, is to provide a “bridge to a vaccine.”  Maybe it will, maybe it won’t, but either way I don’t see how we get out of the debt box we are in without massive inflation/defaults down the road.

How does Mauldin’s “Great Reset” take place?  I’ve often wondered what the effects would be if the central banks (Fed, BoC, EU) just wrote off the billions of govt debt they hold.  The Central Banks would broke and have to be recapitalized, but no individuals lost money and the nations’ budget situation become much better because of interest savings. We might find out.

Failure in business is like a fire in the forest.  Destructive, but necessary for new growth.  I wish the Fed would have let the failures occur in 2008. I think our country would be stronger. People need to LEARN risk.

Amen…zombie companies have lined the pockets of the politicians.  The politicians seem to feel they must do something.  Tragic…studied economics in the 1980s…it seems so far ago and the basics of capitalism are gone.  Keep writing and spinning

Yeah, look, it’s a nice sentiment, though I doubt you’re actually right.

There’s plenty of capital available for a young startup with a bright idea these days. VCs have shit tons (scientific term) of dry powder, begging for deployment.

But even better. I believe we tried your approach before and it gave us the Great Depression, Hitler and WWII. Hey. Creative destruction. We made it through anyhow, right? Sure but 40M people didn’t and might have preferred an interventionist Fed…

A voice in the desert…
This is the year 1905.
For immediate publication.
Our horse-driven cart business, The Great American Cart Co., is suffering the competition of those disgusting, foul-smelling contraptions called “automobiles”.
While I’m sure that in due time these awful “vehicles” will eventually be refused by all law-abiding American citizens, we are suffering diminishing sales in the short term.
Already we had to discontinue the production of our covered wagons, which, let’s be frank, contributed so greatly to the expansion of our great nation. A good part of our workforce will have to be let go if soon a solution is not found. So many highly experienced carpenters, ironsmiths, leather workers will lose their job and the whole nation will lose their expertise.
Where will we find their replacement when the public will be clamoring for more buggies and rockaways?
We demand the prompt intervention of our federal government:
1) by law all state offices and agencies must be forbidden to acquire any non horse-driven means of transportation.
2) A heavy taxation, in all possible form must be levied on ALL non animal-driven carts.
3) We demand a prompt infusion of free cash and that all workers salary be paid by the federal government, 6 months at a time, anticipated and renewable every 6 months.
4) we require that from now on we shall receive loans at 0 % interest, no question asked and re-payable when and if we deem possible. If not repaid those should be forgiven after 5 years.

We ask every worker, every citizen, to rally behind our request: write to your Representative, write to your Senator!
Let’s make America great again! Let’s make America more equal!

P.S. So that our elected representatives waste no more time in future, suggest that they establish a permanent institution charged with those highly necessary tasks. They might want to call it Federal Reserve. A reassuring moniker to remind everybody and the world that we mean business and the nation cares about its workers!

Might your anger be misplaced? The fed is a convenient “whipping boy” for government’s failure to govern. In buying corporate debt, the fed has returned to what it was meant to be. Fed banks were designed to stimulate the economy by buying short-term private debt. The corporation paid down the debt or the bank was head of the line in liquidation.

It takes politicians to really screw things up. Congress forced the fed to buy government debt during WW1, and we’ve not looked back since.

The move toward a totalitarian democracy resplendent with a ruling class oligarchy is well underway - the aspirations of the Bilderberger Group recognized. For surely the supernational sovereignty of an intellectual elite and world bankers is preferable to the national auto-determination (self government) practiced in the past.