Jed,

“I am not aware that a central bank is screwing things up now. There has been no inflation in the US in many years so obviously they are not printing or circulating too much money.”

But they have in not obvious ways. Making money and lending it the banks at zero interest and for the banks to make billions in interest lending back? Mainly it is allowing the government to borrow money that isn’t there. What’s our national debt? 18 trillion? That’s $56k for every person in the US.

“There has been no inflation in Japan since 1972 when I first went there. Things like food, a 100-yen Kirin Lemon softdrink, books and automobiles cost about the same now as they did then.”

So far so good said the man falling from a skyscraper. Japan's debt is 230% of GDP What happens when interest rates increase?

“I gather that economic expansion sometimes depends on expanding the money supply first. First you issue money, then the economy expands in response to that”

It depends on how the money is spent. It surely doesn’t follow that simply increasing the money supply grows the economy. Into whose pocket does the money go?

Much to be said for UBI.

Adrian

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