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View Diary: The White House Rejects Solutions to the Mess it Made. We Will Pay for it With Austerity (220 comments)

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  •  You need to read this John Harvey peice (4+ / 0-)

    Money Growth Does Not Cause Inflation!

    It's much better and more in depth.

    It's true that after the economy reaches full employment money growth by spending can cause inflation which is our only constraint, but who are we kidding? Reserves do not chase goods either unless credit expands and they can be destroyed by private banks that only release them when there is demand and the velocity of money is not constant.

    1 trillion or even 60 trillion would not be released out at once, only locked up and spent for debt with appropriations.

    I don't negotiate grand bargains with deficit terrorists!

    by priceman on Wed Jan 16, 2013 at 10:39:54 AM PST

    [ Parent ]

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