"Class interest led him almost always to the side of the smaller political unit against encroachment by the larger, because the greater the power of local self-government, as a rule, the better for the producer and the worse for the exploiter."
But if the government itself prints additional dollars, then it is legal and it increases the quantity of money. And this is the monetary problem. Apart from the fact that this brings about a very bad situation for those people who were not receivers of the new additional money, because they have not received more money, they now face higher prices.
Ultimately, the Keynesian's deficiency comes down to their lack of capital theory, which eventually leads them to believe in a very disjointed monetary theory.
Printing up money and lowering the value of all dollar-denominated assets while simultaneously benefiting political friends and accomplices is sure
"This myopic focus on 'price stability' made policymakers blind to other possible pitfalls, such as the surge in credit and the rapid growth in asset prices, and the concomitant misallocation of resources led on by distorted price signals."
"An excessive quantity of money," he opined, "should be avoided."
The true tragedy of a fiat money regime is that bogus economic growth by way of monetary and fiscal stimulus can go on only until either the collapse of hyperinflation brings an end to the artificial boom or the amount of accumulated debt makes state bankruptcy inevitable.
Copernicus became the first person to set forth clearly the “quantity theory of money,” the theory that prices vary directly with the s
Deflationary policy is costly for the treasury and unpopular with the masses. But inflationary policy is a boon for the treasury and very popular with the ignorant. Practically, the danger of deflation is but slight and the danger of inflation tremendous.
