Skip to main content

View Diary: Disasters can be defanged by new money creation by Federal Reserve (12 comments)

Comment Preferences

  •  Not sure how serious this diary is. (2+ / 0-)
    Recommended by:
    Bob Duck, Neuroptimalian

    Can we fund FEMA better and more?  Yes.

    Is there no negative consequence to simply printing more money to deal with any issue?  Of course not.

    That's not to say that we should be more concerned with the deficit, in a time of near zero interest rates, than with accelerating the recovery which has been going on for the last 3 years.  We should not be focused primarily on deficit reduction at this time.

    But I suspect you're kidding about simply printing more money to solve every outstanding issue.

    You should list "snark" in your TAGS list.

    •  Let's take this "thinking" to its logical (0+ / 0-)

      conclusion:  While we're printing money with abandon, why not go ahead and print enough to give every poor person a million bucks and make poverty disappear?  Politicians must be really stupid ... or cruel ... not to have done this already.

      (Yes, that WAS snark, lest anyone get all giddy thinking it's actually possible.)

      "Two things are infinite: the universe and human stupidity, and I am not sure about the universe." -- Albert Einstein

      by Neuroptimalian on Tue Oct 30, 2012 at 08:13:42 PM PDT

      [ Parent ]

      •  If ninety-three percent of income growth (0+ / 0-)

        has gone  to the top one tenth of one percent over the past few years and Bernanke has said he's going to create $300-500mm to buy mortgages from hedge funds and banks, can't you see where all the money is going.
        There should be enormous inflation considering the amount of money being created, BUT it's all going to a few (literally) people. Hundreds of billions of dollars created and no inflation because ninety-three percent of it is being robbed.  

      •  Difference is sudden destruction (0+ / 0-)

        You are putting words in my mouth.

        I'm talking about replacing public goods destroyed in an instant.

        Money destroyed is replaced by new money creation.  The money supply is not increased, so no inflation.

        My proposal is purposefully limited to disasters which destroy money.   Your snark helps make my point that it is impossible for the Fed to help individuals without causing inflation.

        But the Fed sure helped the stock market, without causing inflation.  It could do the same for the subway.

    •  Said only one issue - disasters (0+ / 0-)

      We all know full well you can't print money to solve every issue.

      Sudden destruction of goods/money is unique, and the proposal is limited to this.

      I'm not snarking at all, nor am I expanding the proposal.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site