Charities

Here's a question to any economists out there. What the heck are you doing wasting your time reading this crap !?! Seriously though, the question is as follows:

Let us say that, tomorrow, all of a sudden, the thousand richest people in the world agree with all those Wall Street Occupants that they have far too much money. They decide that they will keep a relatively small part of it themselves (say $50 million each), and give the rest to charity. Let us also say that the average wealth of these 1000 people is $1.05 billion - implying that they will give a clean billion to charity... each. That's one trillion dollars.

What is the effect of one trillion dollars suddenly flooding the economy !?! Surely the impact on things such as inflation and devaluation of the dollar must be immense. It could perhaps cause more trouble than good. Even if this trillion dollar tidal wave does not materialise, smaller large acts of charity must be doing something similar on their own scales. Has anyone ever looked at the negative economic and fiscal impact of large scale charity !?! Furthermore, considering that taxes are, in a loose sense, charitable funds, would high taxes also have these side-effects !?!

I realise that the trillion dollars I mentioned above weren't exactly locked away in vaults. Also, a lot of that wealth of the hyper rich isn't really cash in the attic, it's largely an index of the value of their stock and whatnot. Nevertheless, I expect that the question stands in principle.