The impasse over disaster relief is a marvelous example of abject stupidity as well as blithering ignorance of both the concept of fiat money and the concept of insurance. When an insured disaster strikes, the policy holders are billed for the cost to address the problem. And the best way to bill them all appropriately is to create the money needed to address the disaster and spend it into the economy without any additional debt and without any additional taxation. Be sure to understand that the congress must approve the measure in any event. But all the pig shit about it being part of the planned budget is ridiculous on the face of it. Shit happens. And when it happens it should be addressed in such a way as to minimize the adverse effect on the community as a whole. The addition of 4 or 5 billion dollars to the current money pool is not going to cause any adverse effects because the total money pool is so large at present that even 10 billion won't make even a minor ripple. The M2 aggregate is more than 9 trillion according to the Federal Reserve. Any moron that thinks adding 5 billion to that pool will make even a tiny dent needs to learn a few things about money.
http://www.federalreserve.gov/...