Rocky [EMAIL PROTECTED] wrote: > OUR MONEY MADNESS > Thus spake Bernanke to those worried about deflation: "the U.S. government > has a technology, called a printing press (or, today, its electronic > equivalent), that allows it to produce as many U.S. dollars as it wishes at > essentially no cost. By increasing the number of U.S. dollars in circulation, > or even by credibly threatening to do so, the U.S. government can also reduce > the value of a dollar in terms of goods and services, which is equivalent to > raising the prices in dollars of those goods and services. We conclude that, > under a paper-money system, a determined government can always generate > higher spending and hence positive inflation."
why are economic illiterates writing articles? if the government didnt grow the money supply in line with the growth of value creation we would get deflation. most central banks target a small amount of inflation to ward off deflation which is a far greater problem. a small amount of inflation also reduces the real amount that the gov has to pay for its debt. fiat money is the best thing invented since sliced bread. Vic ------------------------ Yahoo! Groups Sponsor --------------------~--> Get fast access to your favorite Yahoo! Groups. Make Yahoo! your home page http://us.click.yahoo.com/dpRU5A/wUILAA/yQLSAA/KlSolB/TM --------------------------------------------------------------------~-> ForumWebSiteAt http://groups.yahoo.com/group/Libertarian Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/Libertarian/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
