He says this crazy shit:
To understand helicopter money, consider two ways that the government can raise $100 billion to fund new spending (or a tax cut).
First, let me backtrack, here's how he defines helicopter money:
"helicopter money," a policy that entails creating money and giving it directly to people or the government to spend.
"Creating money and giving it to the government to spend???"
Are you kidding?
The Treasury can sell $100 billion in bonds to investors.
The Treasury can issue $100 billion in bonds to the Fed, which pays for them by creating new money.
How do you "raise money" when it's your own freakin' currency? You have to fucking put it there first and you're the sovereign, the monopolist, the "maker."
And by the way, the sale of Treasuries is a reserve drain. He should know that. How do you do a reserve drain without first doing a reserve ADD??? The government is not raising money.
And since when does the Treasury sell bonds directly to the Fed as he suggests? The Fed buys in the secondary market. The money to buy bonds comes from government spending itself.
This guy's comments are bizarre.
The Fed is totally f**ked up. These people who work there are hopeless. They should close it down. I think I am for that now. I think I am in Rand Paul's camp now.
By the way, Stephanie Kelton praises this guy for "getting the monetary operations right."
Yep. And he's got the monetary operations right as well. https://t.co/tOaHXf06qK— Stephanie Kelton (@StephanieKelton) March 26, 2016
I'm floored. Maybe he got the monetary operations right, but he got so much wrong. Fundamentally wrong.