Governments cannot create but merely redirect. When the government spends, the money has to come from somewhere. If the government doesn’t have a surplus, then it must come from taxes. If taxes don’t go up, then it must come from increased borrowing. If lenders won’t lend, then it must come from the printing press, which is where all these bailouts are headed. But each additional dollar printed diminishes the value those already in circulation. Something cannot be effortlessly created from nothing.
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Peter Schiff Says There’s No Pain-Free Cure for Recession - WSJ.com [via carpe diem, h/t devin] (via hilker) (via jhnbrssndn) (via jeffmiller) I have an uneasy feeling that some in the Government are counting on the threat of inflation to convince people to spend money now instead of holding it until later. Jeffmiller, your uneasy feeling is actually economic policy. Bernanke has stated as much. I suspect you knew that. I reblogged this because I’d like to point out that Peter Schiff has been right more than wrong in his calls over the last few years (watch this). He’s worth listening to. |
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This is in response to that...quote. I have a problem with the phrase “better wealth...
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devin: hilker: jhnbrssndn a primer on economics for populists and the generally unaware public. but this is precisely...
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hilker posted this
