Glen L.

Let's Just Say It: Print More Money

First, I am heartened by the number of commenters who know that this article is rubbish. It gives me hope that economic education is occuring. I attribute this entirely to the proliferation of sound economic analyst on the internet; the mainstream media consists primarily of government shills who echo the Keynesian nonsense for their controllers.

If anyone doubts that Helicopter Ben is inflating the money supply, go to the Fed website that shows M1 money supply; it has almost tripled since September, and the graph looks like the famous "hockey stick" graph that the global warming purveyors use to show the supposed increase in global temperatures - only this hockey stick is real. Right now all this money is being absorbed by the banks because of horrible lending conditions and the fact that the Fed is paying interest on reserves, but sooner rather than later the paltry interest rates will no longer make sense and that money will flood into the economy.

The result? Hyperinflation looms. No, not Zimbabwe-style, but probably 100% inflation per annum. Just think what that means for the Social Security ponzi scheme, which has built-in COLA increases. How about medical prices - how can Medicare/Medicaid be maintained when they too are untold trillions in the red now?

Right now we're experiencing price deflation in many sectors, which is an unmitigated good thing. It must not be confused with monetary deflation, which only happens when people withdraw money from the economy, i.e. stuff it in mattresses. When they put it in their savings account it goes back into the economy via loans, which is exactly what we need to spark the economic recovery. The last thing we need is monetary inflation.