Digitizing Money Inflation Changes Nothing
Any student of money and banking recognizes the sophistry in saying that "the Fed does not pay with paper money."
Any student of money and banking recognizes the sophistry in saying that "the Fed does not pay with paper money."
There was no "irrational exuberance"; the exuberance was completely rational given the price signals at the time.
So, isn't it time to demythologize all of this? Treasuries are bonds just like any other bonds. There's nothing magic, mythical, or sacred about them. A default on US government debt is no more or less radical than a default on any other kind of debt.
A credit default is not unprecedented. One occurred as early as 1777 and another as late as 1979.
Joseph Salerno is interviewed by the Daily Bell.
It's going to happen unless we get radical reform soon.
The money inevitably flows to the latest speculative fashion, whatever it happens to be.
One wonders if this Fed official ever read Aldous Huxley's chilling book.
Without government, unemployment could be relatively easily alleviated.