Fed official spreads some stupid propaganda

Fed official hits Trump comments on debt

Republican presidential candidate Donald Trump’s suggestion that the U.S. could print more money to pay down its debt would lead to severe problems for the economy and unfairly harm those with lower incomes, Federal Reserve Bank of San Francisco President John Williams said Tuesday.

“We know that monetizing the debt leads to super high inflation,” Williams said at an event hosted by POLITICO. “It’s one of the worst kinds of outcomes you can have.”…..

By monetizing debt he means that Fed is buying government debt. He says it leads to super high inflation. Guess what, It doesn’t.  ECB has been doing that on a massive scale, yet they are fighting deflation in Europe. Same can be said about Japan. QE has not lead to super high inflation in US and UK. The printing money term has to be used around ignoramuses who don’t understand how the monetary system actually operates. No need to “print money” for everything to be ok with government debt.

About Kristjan

Defitsiidi terrorismi vastase pataljoni eriüksuslane (finantsignorantsuse vastu võitlemise osakond). Treening: MMT, postkeinsism, Tartu Ülikool Majandusteadus
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