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Cullen Roche  

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  • Why Not Just Print More Money? [View article]
    Hi, nice to meet you. Do we even know one another? Where in the world did you come up with this stuff about "my" world views? I never said govt violence should compel note creation. I never said humans weren't the most important resource on the planet. In fact, I wrote an entire book emphasizing the fact that private production is, by far, the most important component of the economy! You have created this pure fiction about what I "am" and what I believe....

    What I am even more tired of is this Austrian Economics nonsense. You are promoting beliefs based on a school of economics that is pure nonsense. It has been thoroughly debunked. It is nothing more than political propaganda. How does anyone in the world still believe the stuff being promoted by Peter Schiff and friends?

    Nov 19, 2015. 04:05 PM | Likes Like |Link to Comment
  • Why Not Just Print More Money? [View article]
    I can see that I am wasting my time. You literally didn't even come close to understanding the point I was making. Google "endogenous money" or read this post I wrote 5 years ago:

    This Bank of England paper also goes into this in some detail:

    I am happy to help if you're interested in understanding these concepts. But if you just want to insult me with the usual Austrian economics claptrap then let's both save our time....
    Nov 19, 2015. 03:45 PM | Likes Like |Link to Comment
  • Why Not Just Print More Money? [View article]

    Your problem is that you think of the monetary system as you versus everyone else. As if it's this big competition and anyone or anything that impedes your personal progress is infringing on your personal well-being. You've whittled the whole system down to protecting your personal property and nothing else. Well, I hate to be the bearer of bad news, but the monetary system exists for purposes other than just maximizing your personal property.

    If your argument against government comes down to little more than an excuse for you to be selfish then don't even bother. You've lost the fight before you even open your mouth. This psuedo Austrian economics BS has lost. It's been game, set, match on you guys for a decade now. Update your views!
    Nov 19, 2015. 03:23 PM | 1 Like Like |Link to Comment
  • Why Not Just Print More Money? [View article]
    You guys read too many fear mongering websites. Anyhow, I've got a flight to catch. Didn't mean to give you the impression that I am in favor of unfettered govt spending. But I think this talk about "collapse" is way overdone....

    Take care.
    Nov 19, 2015. 03:14 PM | 1 Like Like |Link to Comment
  • Why Not Just Print More Money? [View article]
    You're accusing me of being "uninformed" when you write comments on this website like:

    "My understanding is that all the cash from QE is still sitting at the PDs. Apparently this cash isn't being converted to loans."

    This is such a basic misunderstanding of banking that I don't even know where to start. This money multiplier type thinking has been thoroughly debunked in the last 5 years by myself, the Bank of England, the Fed, etc. And if you don't understand how banks work then you can barely even begin to understand how the financial system works....

    If you want to defend the "truth" then perhaps start by learning the most very basic facts about how the monetary system works....I've written about all of this extensively. It's all on the internet for free if you want to have an open-mind and try to absorb a view that is something other than "government bad, free market good"....
    Nov 19, 2015. 02:51 PM | 2 Likes Like |Link to Comment
  • Why Not Just Print More Money? [View article]

    Your last statement about "printing" and production is very consistent with my description of the process of disaggregation of credit. When credit is used for unproductive purposes (like speculating on a housing bubble) it can be harmful. When credit is used for productive purposes (like building a new factory for output) it can be helpful.

    Of course, the govt often plays a different role when they create financial assets. They are often serving public purpose and this doesn't always increase our production directly. For instance, building bombs and killing people is just about as unproductive as spending can get. But I'd say that it's productive in that it helps to avoid potential destruction. WW1 or WW2 are great examples. There are numerous charitable and research examples that are similar. The US govt spends huge amounts on scientific and medical research and while these endeavors often end up being wasteful they also end up being huge advancements in innovation at times. Measuring our economic well-being based purely on GDP or how much "stuff" we create is not a sign that we are necessarily prospering as a society....

    I think we have to be careful painting with such a broad brush here....
    Nov 19, 2015. 01:58 PM | Likes Like |Link to Comment
  • Why Not Just Print More Money? [View article]

    Your counterfactual argument is the straw man. It is a mythical world. We can neither prove nor disprove your point because your counterfactual doesn't exist in modern times. Fortunately, it has existed in the USA in the past.

    In the late 1800's and early 1900's the USA was about as close to raw capitalism as we have ever seen. The means of production were almost entirely owned by private industry. During this period income inequality was at record highs. The poverty rate was astronomical. Between 1850 and 1925 we experienced 5 banking panics and depressions. Is this the world you long for? A world where 5 men basically own all of US industry?

    Look, I am not in favor of uncontrolled govt spending or anything like that. But we shouldn't just go out and assume that the world is worse off because govt debt as a % of GDP is high. That's not consistent with the historical record by any means. The truth is somewhere in the middle and we can probably agree that some govt is okay, but that we should be wary of autocratic regimes. And though some people seem to disagree, the USA is far from being autocratic or on the brink of collapse due to govt intervention....I know it makes for good political talking points to say "govt bad, free markets good", but the world is a lot more complex than that....
    Nov 19, 2015. 01:47 PM | Likes Like |Link to Comment
  • Why Not Just Print More Money? [View article]
    You discuss aggregates, but global aggregate debt has exploded in the last 75 years. Yet global poverty is lower than it has ever been, global inequality is declining, we lift more people out poverty every year than ever in human history, we produced more in the last 25 years than we did in the entire previous 1,000 years.

    You have tried to portray the world as being worse off than it was 75 years ago. That's a preposterously misleading argument!

    I've also never argued that autocratic regimes grow more than democratic regimes. Where did you even get that? I am a huge free market proponent. The difference between me and some people commenting here is that I am not totally against some government intervention in the markets. I am a capitalist through and through. Have been self employed my entire adult life. I've never asked the govt for a dime. You'd be hard pressed to find someone who is more capitalist than I am!
    Nov 19, 2015. 12:01 PM | 4 Likes Like |Link to Comment
  • Why Not Just Print More Money? [View article]

    Every society except....the USA? We had an even higher debt:GDP ratio after WW2. People like you were saying the exact same thing in the 1950s about how this crushing debt burden was going to steal from our children and bankrupt the country. You know what happened next? We had one of the most productive and prosperous 50 years in the history of human life. Some "burden" you were forced to endure there....

    Why is the borrowing capacity of the next generation reduced? You didn't explain this at all. The prediction that the USA is on the verge of collapse is quite a bold comment. Would you like to back that up with something other than politically charged rhetoric?

    I've spent almost a decade writing articles debunking thinking like yours. So far all of you have been wrong about the impending doom of the USA due to high spending and debt. How long do you get to be wrong before people start seriously questioning your understanding of the financial system????
    Nov 19, 2015. 11:01 AM | 4 Likes Like |Link to Comment
  • Why Not Just Print More Money? [View article]

    Americans aren't born with debt that they have to pay back. Were you born with a tag that says "must pay $30,000 before expiration"? Of course not. The national debt doesn't get paid back. Ever. It grows with the public's various needs. If it's wasteful then it causes economic problems. If it's productive then it contributes to overall growth. But we aren't born with some debt tag that has to be paid off before our deaths. That misrepresents the dynamics here.

    Nov 18, 2015. 10:34 PM | 5 Likes Like |Link to Comment
  • Why Not Just Print More Money? [View article]
    I wrote an entire book on the financial system and in that book I am very specific that govt spending is not always good. I've probably written the same thing in Seeking Alpha posts 100 times over the last 7 years....If you've missed that point then that's your misinterpretation. But I certainly NEVER implied that govt spending is always good.
    Nov 18, 2015. 05:24 PM | 1 Like Like |Link to Comment
  • Why Not Just Print More Money? [View article]
    @ Logical Thought - The whole point of this post is to show that the govt cannot actually print money in the manner being discussed. The US Treasury cannot do it and I stated that I don't think it would happen because the political climate wouldn't allow it....
    Nov 18, 2015. 03:40 PM | 1 Like Like |Link to Comment
  • Why Not Just Print More Money? [View article]
    Yes, we could certainly change the laws so that the distribution channel of money changes, but we have a hard enough time passing a debt ceiling increase. Can anyone even fathom the potential to let the Treasury print cash off the balance sheet?? I actually laugh out loud a little bit at the very idea of that because the political climate is so toxic at present that I think there's a negative % chance of that happening....
    Nov 18, 2015. 02:07 PM | 2 Likes Like |Link to Comment
  • Why Not Just Print More Money? [View article]
    Theoretically, this could be done, but this is not how cash is currently distributed. The Tsy would have to circumvent the banking system to do this. As far as I know the Treasury does not have the legal authority to do this at present. They are required to fund their spending from their account at the Fed via taxes or bond issuance.

    So, your point is nice in theory, but not a practical solution in reality. That was the main point of the article!
    Nov 18, 2015. 02:05 PM | 1 Like Like |Link to Comment
  • Why No One Should Support The Gold Standard [View article]
    Hi Daniel,

    Sorry about that. I really just wanted to use the "gold heavy, head heavy" joke. Looks like I hit the wrong target.

    Have a great weekend.
    Nov 13, 2015. 10:37 AM | Likes Like |Link to Comment