Home > economics, political-economy, shorter work time > The exact opposite of a smart idea to prevent economic collapse: Print money to pay the Wall Street terrorists
  1. Daniel R.
    February 24, 2011 at 12:48 am

    A very interesting read, however, you didn’t address the currency factor in what you called the ‘lump of price fallacy’. You just said if we punched greedy businessmen in the face, the price problem would be solved and we wouldn’t be talking about increasing currency.

    What, is there really something wrong with the fiat stimulus he’s talking about? Or is it simply that we’ve tried it for years and we’re still in a mess, so it doesn’t work? I’ve been studying inflation deeply for the past few weeks so I’m curious what you’d say…

    Well I’m just starting to read through your 8 letters on analyzing economic depression. Maybe I’ll find your answer in there…

    • February 24, 2011 at 11:37 am

      There is indeed something wrong with it: it presupposes the collapse of exchange. Exchange in a market context means equal exchange of values. If I am printing money and exchanging this fictitious money for real goods without producing any real goods in return, exchange has broken down. The breakdown is expressed in the increasing exchange ratio of money for all goods, or, what is the same thing, in inflation — a generalized rise in the prices of all goods.

  1. September 4, 2010 at 12:24 am

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