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The Magic Printing Press

April 14, 2008
John H. Makin, American Enterprise Institute, writing in the WSJ, on avoiding nationalization by destroying the dollar:
In my view, the least bad option is for the Federal Reserve to print money to help stabilize housing prices and financial markets. Yes, use reflation to soften the pain for Main Street and Wall Street. If instead we let housing prices fall another 25%-30% - as predicted by the Case-Shiller Home Price Index - it's almost certain that Washington will end up nationalizing the mortgage business.... Printing money is a radical step that enables the Fed to stop pegging the federal-funds rate and start increasing market liquidity directly.
I post this so that no one can say that hyperinflation doesn't have its advocates.

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