Every time you turn around it seems, Goldman Sachs (NYSE:GS) has added another $500 billion, or trillion, to what is needed for the Federal Reserve to meet its goal of increasing inflation via quantitative easing.
The latest figure is the Fed will need to print $4 trillion to reach their goal of 2 percent or more.
Recent research by Goldman has said a minimum of $2 trillion would be needed to move inflation, but that probably wouldn't be enough, and $4 trillion is the more likely target.
In the midst of the rebellion by American people against outrageous spending and stimulus, it's extremely doubtful that the Fed would have the courage to print another $4 trillion. Even $1 trillion would probably be considered outrageous, and it would be.
One reason this won't work is even if the money is printed, the banks aren't lending to businesses, and most businesses aren't seeking loans because of the realities of the weak economy.
Throwing more money at the problem won't change that scenario one bit.
Hints the Fed may print money at intervals to give the appearance of being more wise with their dispensing of money won't fool many people for long, as it's not too difficult to add up billions over several quarter to reach the trillion and more that will ultimately be spent.
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