Re:The ballooning money supply may be the key to unlocking i...
by thisiscorrect on Tuesday October 13, 2020 @02:20PM
(#24768332)
How do you, or the Fed in this case, earmark where a dollar goes? Paying interest in excess reserves is the only mechanism I've heard for them to keep money "locked up." Will that continue forever? What's the point of increasing the money supply if not to let it circulate?
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Re:The ballooning money supply may be the key to unlocking i...
by 0xfaded on Tuesday October 13, 2020 @02:37PM
(#24768609)
Historically that would have been public works employment through infrastructure investment.
The government could have printed a bunch of money to build a giant nuclear is solar plant, and then have a revenue generating, publicly owned asset at the end of it. Instead the government printed the money to prop up existing asset prices.
Just like increasing a company's cap table, there's nothing wrong so long as the new money is converted into a new asset of value that remains in the company's balance sheet.
In fact, a well managed money printing event should dilute private wealth and replace it with public wealth, which is the sort of green new deal I support.