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View Diary: There is NO fiscal cliff. (69 comments)

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  •  You misunderstand the diary if you think that (6+ / 0-)

    follows from the logic laid out. The effectiveness of printing money is obviously constrained by legitimate economic demand. That doesn't mean the government can only use existing money, but it doesn't mean they can print more money than what's needed to sustain market conditions without diminishing its value. A government paying its own bills exclusively with printed money obviously falls outside the confines of legitimate economic demand.

    You must understand that the government here doesn't print money at will, but to respond to lending pressures exerted by banks that are part of the Federal Reserve system. Drawing an analogue with a country that actually does print money willy nilly (e.g. Zimbabwe in the 2000s, Yugoslavia in the 1990s) and the consequences therein is inaccurate because the Federal Reserve operates in a different manner --- and under different circumstances --- than the central banks in countries where monetary policy is more centralized.

    Compassion is not weakness, and concern for the unfortunate is not socialism.

    by Zutroy on Sat Nov 10, 2012 at 09:21:21 AM PST

    [ Parent ]

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