In response to:

Push the Fed Over the Cliff

Macroman Wrote: Dec 03, 2012 6:41 AM
(1) Currency is a zero-coupon perpetuity, so it is constitutional. The Fed regulates it, so the Fed is constitutional. What may not be constitutional it making currency legal tender. Imagine what the economy would be like if only metallic money were legal tender. No currency, no checks, no credit cards. (2) Kieffer confuses the monetary base (currency) with money (MZM). MZM growth has been average since 2008. The Fed prevented a collapse of the money supply and the financial system by injecting currency to offset the huge drop in the money multiplier since late 2008. Inflation has been lower since 2008 than over the previous 10 years. The exchange rate now is about the same as at the end of 2008. What's the problem?
jmonaco Wrote: Dec 03, 2012 10:56 AM
Macro --
From real life experience, I am unconvinced the inflation rate is/has been lower. What's your source of measurement?
Marc_H Wrote: Dec 03, 2012 8:08 AM
you do know the FDR made the Great Depression worse by stupid policies, right?

we have people in DC, like the POS Rangle, that make laws WE have to follow, not him
David70 Wrote: Dec 03, 2012 8:07 AM
Problem=declining value of the dollar. Looked at commodity prices lately?
RayTheAnarchoCapitalist Wrote: Dec 03, 2012 8:03 AM
The only reasons why we haven't seen massive inflation is that (1) the freshly printed money is sitting in the banks which are afraid to loan it out, and (2) our trade deficit allows us to export inflation. (2) isn't likely to change any time soon, but if we ever get out of this liquidity trap the inflation is going to bite us in the balls.

Stop worrying about the ‘fiscal cliff.’ Spending cuts would feel therapeutic after watching Standard & Poor's and Egan-Jones downgrade our credit rating and seeing President Obama add $6 trillion to the national debt. The way to avert another recession and massive inflation is to eliminate the unconstitutional Federal Reserve.

There are two ways for politicians to “pay” for their spending. They can be transparent and raise taxes extremely high across all income levels. (This is not happening because politicians know Americans would riot.) Or, they can be sneaky and “monetize the debt,” which means allowing the Federal Reserve to print money...