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Should the Fed print money like the article suggests doing? (Read 134 times)

Land of Freedom Libertarian's Forum Administrator Offline Libertarian's Forum Posts: 371 The Land of Freedom	Should the Fed print money like the article suggests doing? Mar 1^st, 2010 at 5:19pm Don't go wobbly on us now, Ben Bernanke Also, is deflation a concern? Interesting article.
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Angus

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Re: Should the Fed print money like the article suggests doing?
Reply #1 - Mar 2^nd, 2010 at 12:21am

Printing money is the worst way to work our way out of this problem because it simply does not work. By printing money, we will accelerate the our eventual inflation once the money flows from the banks to customers. While most of this money is holed up in banks, money proposed to be printed in order to help communities will not help out in the long run as the crises attempted to be corrected with artificial methods will in the long run result in a much slower recovery.

We need to let a real free market to over this process, which means that although things might look ugly in the short run, a positive correction will eventually occur because the government is not reacting with artificial methods.

"Any society that would give up a little liberty to gain a little security will deserve neither and lose both." Ben Franklin

http://freespchdre.blogspot.com/

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meric

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Re: Should the Fed print money like the article suggests doing?
Reply #2 - Mar 2^nd, 2010 at 8:42am

IMO they're delaying the inevitable. Printing money is just another means to tax the people. (Well actually... printing money to pay off all debts, then start a new currency isn't such a bad idea if the debts are killing you.... but just be aware of possible wars over this. You're also going to have your credibility destroyed so you can't borrow any more.)

(I'm going to be killed by keynesians over this.) What they should do is aggressively cut costs without increasing taxes. Pay off their debts and start saving. The sooner people save the sooner they can make investments, and the sooner the economy can bounce back.

Yeah, it would probably trigger a second great depression... That's only because someone racked up so much debt to begin with.

Interest rates should be the most the government should do (should it?? I'm starting to question myself about this too).... rather than bailing out banks and car companies. Nothing is too big to fail. If it's too big and can't sustain it self that means it's inefficient and so NEEDS to fail, or you're just rewarding the losers.

See if they didn't spend so much money doing this they could've bailed out some state governments instead.

my 2c.

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Land of Freedom Libertarian's Forum Administrator Offline Libertarian's Forum Posts: 371 The Land of Freedom	Re: Should the Fed print money like the article suggests doing? Reply #3 - Mar 5^th, 2010 at 10:32pm Expanding the money supply, printing money, devalues the money people saved or will collect as payments on bonds or other investments. It's like a tax that takes value from people and transfers the value to the government or Fed.
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