Comments on: Creating Money Out of Thin Air!!! http://economyblog.ncpa.org/creating-money-out-of-thin-air/ Taxes, Economic Policy, and Federal Budget Insights | NCPA Wed, 16 May 2012 18:52:16 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Blogging through the Financial Crisis | Economic Policy | Bob McTeer | NCPA http://economyblog.ncpa.org/creating-money-out-of-thin-air/comment-page-1/#comment-10066 Blogging through the Financial Crisis | Economic Policy | Bob McTeer | NCPA Thu, 14 May 2009 15:23:03 +0000 http://www.bob-mcteer-blog.com/?p=779#comment-10066 [...] 4-14  Creating Money out of Thin Air [...] [...] 4-14  Creating Money out of Thin Air [...]

]]> By: Market Talk » Blog Archive » Deflation Will Wreck World Economy! http://economyblog.ncpa.org/creating-money-out-of-thin-air/comment-page-1/#comment-9890 Market Talk » Blog Archive » Deflation Will Wreck World Economy! Wed, 22 Apr 2009 15:00:01 +0000 http://www.bob-mcteer-blog.com/?p=779#comment-9890 [...] convoluted to go into here, the Fed doesn’t actually create money; for details, just follow Bob McTeer.) And with more and more Americans losing their jobs, or having their salaries frozen, or [...] [...] convoluted to go into here, the Fed doesn’t actually create money; for details, just follow Bob McTeer.) And with more and more Americans losing their jobs, or having their salaries frozen, or [...]

]]> By: EBD http://economyblog.ncpa.org/creating-money-out-of-thin-air/comment-page-1/#comment-9870 EBD Thu, 16 Apr 2009 19:39:50 +0000 http://www.bob-mcteer-blog.com/?p=779#comment-9870 Mr. Mc. Teer, Granted, "prices" don't rise until money is spent, but isn't that what Obama, Geitner, and Bernanke wish most? Current experiments rest on the assumption that the Fed can reduce the money supply before inflation (rising prices) occurs. This isn't likely to occur due to political will as well as the Fed's new found ownership of some less liquid assets (with negative convexity as well). The government as largest debtor depends upon this inflation for survival as they are the first beneficiary. You say rest assured no new wealth is created with money creation. Of course not, that is what is treacherous. Money is created out of thin air without the wealth building characteristics of a free market economy such as innovation, entrepreneurism, risk, and labor. That is was debases the nations wealth. In the words of Voltaire,"It is dangerous to be right when the government is wrong." Mr. Mc. Teer,

Granted, “prices” don’t rise until money is spent, but isn’t that what Obama, Geitner, and Bernanke wish most?

Current experiments rest on the assumption that the Fed can reduce the money supply before inflation (rising prices) occurs. This isn’t likely to occur due to political will as well as the Fed’s new found ownership of some less liquid assets (with negative convexity as well).

The government as largest debtor depends upon this inflation for survival as they are the first beneficiary.

You say rest assured no new wealth is created with money creation. Of course not, that is what is treacherous. Money is created out of thin air without the wealth building characteristics of a free market economy such as innovation, entrepreneurism, risk, and labor. That is was debases the nations wealth.

In the words of Voltaire,”It is dangerous to be right when the government is wrong.”

]]> By: John Booke http://economyblog.ncpa.org/creating-money-out-of-thin-air/comment-page-1/#comment-9847 John Booke Wed, 15 Apr 2009 00:15:16 +0000 http://www.bob-mcteer-blog.com/?p=779#comment-9847 Your point about that newly created money "does not cause inflation until it is spent" is well taken. For me the scary part is that "banks" (and I guess other finanical companies) can "create money out of thin air." The government is supporting banks that made side bets using unregulated insurance instruments and that is causing a huge spike in the monetary base. At some point won't the smart financial guys figure out a way (a good bet would be speculation in hybrid FX instruements) to spend that spike in money and cause velocity of money to rocket? Your point about that newly created money “does not cause inflation until it is spent” is well taken. For me the scary part is that “banks” (and I guess other finanical companies) can “create money out of thin air.” The government is supporting banks that made side bets using unregulated insurance instruments and that is causing a huge spike in the monetary base. At some point won’t the smart financial guys figure out a way (a good bet would be speculation in hybrid FX instruements) to spend that spike in money and cause velocity of money to rocket?

]]> By: hoho http://economyblog.ncpa.org/creating-money-out-of-thin-air/comment-page-1/#comment-9846 hoho Tue, 14 Apr 2009 20:37:36 +0000 http://www.bob-mcteer-blog.com/?p=779#comment-9846 Gee, is this the best you can get, Bob? why didn't you mention a word of March 18? what can i say? Americans, Republicans. Gee, is this the best you can get, Bob?
why didn’t you mention a word of March 18?
what can i say? Americans, Republicans.

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