Originally Posted By: buster
http://www.voxeu.org/index.php?q=node/3444
Must be a minority view. I thought printing money was inflationary. Inflation causes prices to rise. It's not the CPI.
Printing money causes the money to be worth less. IMO, THAT is the definition of inflation.
That article is like a college economics textbook. Great theory, no historical context.
We're spending money right now like it grows on trees and our trade and budget deficits are ASTRONOMICAL.
We have close to a $60 trillion dollar accrual basis budget deficit. The fed can do whatever it will do; history has shown us that when countries operate like we do, they eventually go down the economic toilet.
Hey, if I printed a bunch of Drew99GT dollars in my basement and provided little to no economic value to you, just how much of that printed money would you accept to provide me a good or service? Lots of it, because it would be worth little to nothing.
Well, that simple concept is fundamentally how countries work as well, and the numbnutzes in Washington never seem to get that through their thick skulls.