Get rid of Alan Greenspace and the Fed?
- Thread starter The Kin
- Start date
Lol....that's one of the dumbest ideas I've ever heard. I wonder if the person who though of it really understands the statement.
If the state basically ignores all monetary theory, then the only thing left is fiscal policy. So the only way to induce economic stimulus is through government spending, most likely debt spending.
Basically what would happen is there would be free reign on spending by the government (money demand) with a fixed money supply. You think the debt is an issue now, try that scenario. If spending is the only way to stimulate the economy, the inevitable collapse would be devestating.
I would generally agree, but in this case governments are necessary. I subscribe to the monetary school of economics and I really dont' agree with fiscal means of economics control, as it is (in my opinion) to blame for our current day debt problems in the developed nations.
This does not mean government intervention is useless. The market does not have control of monetary and fiscal acts of the governments. Markets will regulate lending, but the controls will be much more volatile than if the Fed is helping clamp down or expand money supply.
Saying the markets can rule absolutely (and be fair and stable) is the anarchist's answer to economics. In practice it won't work as well as on paper.
Arguing about Greenscam is like arguing religion. Personally, I think he is Public Enemy #1.
25 years ago on Wall Street Week, Milton Friedman told Ruky, "... The Fed should be abolished... and replaced with a computer to increase the money supply by 2% per year to keep up with the increase in population...".
As an Anti-Gummint Libertarian, I wholeheartedly agree.
25 years ago on Wall Street Week, Milton Friedman told Ruky, "... The Fed should be abolished... and replaced with a computer to increase the money supply by 2% per year to keep up with the increase in population...".
As an Anti-Gummint Libertarian, I wholeheartedly agree.
Yes. The Fed is a fraud. Theft by inflation. It's all by design. It allows gov't to spend more than their tax revenue by stealing from its citizens. A hidden tax.
Monkeying around with stimulating the economy in the short term (for some short-sighted goal like getting someone elected) has dire consequences for long term stability. Fiat money schemes always end badly.
Monkeying around with stimulating the economy in the short term (for some short-sighted goal like getting someone elected) has dire consequences for long term stability. Fiat money schemes always end badly.