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
