Sunday, October 17, 2010
The problem is imbalance between money and credit. This problem cannot be solved simply by printing more money, because in a growing economy our financial system takes every new dollar and uses it to create $30 of new debt. The imbalance cannot be corrected unless a policy of "printing money" is accompanied by a policy for reducing the reliance on credit, and by a policy for accelerating the repayment of debt.
For some time I've been wanting to write a book called The Management of Fiat Money but I don't yet know near enough about it. Mosler might; but he has yet to work out the theory behind it, or adopt the one I've worked out here.
I loaned a friend $50 once, some 40 years ago. He never paid me back. Obviously I still remember it. And I do not hold that friend in high regard. So much the worse, if it was not my friend but my government that stiffed me.
Posted by The Arthurian at 4:17 AM