They Believe the Money's Free They believe the money's free
It's funny as we hoard their silver spoons
They believe the money's free
It's funny as we just call it "Voodoo"
They believe in CPI
It's funny as we buy gold krugerrands
They believe in CPI
It's funny as we fight off in the sands
Money, markets, and property?
Silver and canned goods and pinto beans!
We'll stock up before the prices grow
Will eight trillion debt overflow?
They believe the money's free
It's funny as we hoard their silver spoons
They believe the money's free
It's funny as we just write more lampoons
Money, markets, and property?
Silver and canned goods and pinto beans!
We'll stock up before the prices grow
Will eight trillion debt overflow?
They believe the money's free
It's funny as we hoard their silver spoons
They believe the money's free
It's funny as we just write more lampoons
They believe the money's free
They believe the money's free
They believe the money's free
They believe the money's free
Poster Comment:
Dr. No Soundtrack, 14th song
Deflation: Making Sure "It" Doesn't Happen Here, Ben Bernanke
What has this got to do with monetary policy? Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.
So first he claims that money only has value if it is strictly limited in supply. That makes sense. Then he goes on to show how easy it will be to print unlimited sums of money at virtually no cost. Excuse me?
Deflation (economics)
Bernanke, a board member of the US central bank, has made the case that the US central bank (Fed) was ready to drop money from helicopters, finance on a large scale the federal deficits. However this policy has never been implemented so far on a large scale, probably because it is blatantly inflationist and because it hurts all those who profit from the lending business.
Apparently we'd all love him to replace Alan Greenspan though. Prosperity ahead for all.