Lok Sang Ho

Let's Just Say It: Print More Money

I agree with the spirit of your analysis. But how does money flow into the system? It goes into the system either as the private sector borrows from the banking sector and spends it, or as the government borrows from the Fed and spends it. If the private sector is not borrowing and the banks are not lending, the only way money can get into the circular flow is for the government to borrow and spend it, preferably on projects that are productive and beneficial over the long run. This is exactly what the government needs to do now. I advocated buying homes below the national median price from existing homeowners at the appraised market price as of some cut-off date to prevent housing prices from slipping further and damaging the economy, and I still think this is the best way to deal with the current crisis. I first made this proposal last October, and if the Federal Government had done as I said the US and the global economies would have been much stronger.

Let's Just Say It: Print More Money

I agree with the spirit of your analysis. But how does money flow into the system? It goes into the system either as the private sector borrows from the banking sector and spends it, or as the government borrows from the Fed and spends it. If the private sector is not borrowing and the banks are not lending, the only way money can get into the circular flow is for the government to borrow and spend it, preferably on projects that are productive and beneficial over the long run. This is exactly what the government needs to do now. I advocated buying homes below the national median price from existing homeowners at the appraised market price as of some cut-off date to prevent housing prices from slipping further and damaging the economy, and I still think this is the best way to deal with the current crisis. I first made this proposal last October, and if the Federal Government had done as I said the US and the global economies would have been much stronger.