I wonder what Max Keiser would make of this, he's become more outspoken against fiat money and MMT recently? He says fiat money causes inflation.
Fiat currency always fails. The Fed’s ever-increasing balance sheet is a sign that we are in the end times for the U.S. dollar. Eventually, all that money printing will cause runaway inflation. The dollar will go up in flames, and with it, the U.S. economy.
I have heard this line of argument many times over the last decade. In the aftermath of the 2008 financial crisis, it was usually advanced by people who wanted the return of the gold standard – “goldbugs,” as they are often known. More recently, Bitcoin hardliners have joined the chorus. Now, in these extraordinary times, even some conventional money managers are predicting hyperinflation. “Money printer go brrr,” they say, and mutter about wheelbarrows and currency wars.
CoinDesk
Frances Coppulla - ‘Money Printer Go Brrr’ Is How the Dollar Retains Reserve Statu
3 comments:
“ Eventually, all that money printing will cause runaway inflation. The dollar will go up in flames, and with it, the U.S. economy. ”
iow “if you don’t abandon your thesis and adopt my thesis then your whole economy is going to go to hell blah blah blah....”
This is a typical form of Platonist threat....
“ But since banks don’t “lend out” reserves, giving banks more reserves doesn’t force banks to lend. Indeed, since the Fed pays banks to hold reserves in excess of their reserve requirement, it could be argued that having too many reserves in the system actually discourages banks from lending. ”
Why could it be argued that it discourage banks from lending she just tells you in the previous sentence they don’t lend out reserves????
Looks like Frances plagiarized my stuff. My entire podcast last week explained how the stock market rose faster when reserves went down. (Money "un-printing.")
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