Money Creation: The Disease And The Cure
Money creation helped create the massive federal debt, and more money creation will be the proposed solution.
This is Part Two of a three-part series on the consequences of the US Government’s unpayable national debt. Today I outlined what our monetary authorities - the Fed, Treasury, the banks, and Congress - might do to implement ‘financial repression,” that is, a policy promoting high inflation and below-market interest rates.
I recorded this podcast on Friday, January 27, on the ARI-UK Youtube network. You can enjoy it at 1.25x normal speed.
As usual, I’ve attached a transcript for readers. It’s slightly edited for ease of reading.
Feel free to forward my essays and podcasts to anyone you think may be interested in understanding money creation. Your comments and questions are always welcome and encouraged!
Thanks
HardmoneyJim
January 27, 2022
This episode was very helpful. I feel like I get it now: We don't have a disease that kills the government/economy, but more of a disease that weakens it and requires active management by the politicians to keep it from becoming fatal (and there is a proven method to do so, i.e., financial repression). The trick for the individual is, to the extent possible, not to be along for the ride because your savings are being diluted, just like the milk in your analogy.
I look forward to installment 3 wherein you presumably lay out what to equip your sail boat with as you explore this analogy, which I loved:
"You can jump off this ship any time as it sails into rougher and rougher waters. In my opinion, the sooner you get into your personal sailboat and go your own way, the better."