I want you, every morning, to wake up, look in the mirror and ask yourself: 'What can I do today to increase the money supply?' "
-- John Erlichman
Steal M2 from my neighbors (through credit card fraud and identity theft, perhaps?) and put it back into circulation as good ol' M1 by spending it on twizzlers and lava lamps.
--G
My wife is very patriotic.
She wakes up every day and asks herself “What can I do today to increase employment?”
Her answer is always the same, “I will buy something.”
You call it increasing the money supply. The Treasury calls it counterfeiting. I call it courting inflation. Alan Greenspan calls it fighting deflation. A rose by any other name...
Posted by: James Picerno on August 6, 2003 10:05 AMBeing productive and creating value is the only way to increase the "money supply". Printing money doesn't do it..
;)
Posted by: Del Simmons on August 6, 2003 12:23 PMI know of a mechanism that absorbs raw materials and creativity and transforms these inputs into things of far greater value. Its called a market. They work well and are easy to use. However, just because they're easy to use doesn't mean you shouldn't try to fix them yourself. It voids the warranty and can have bad side effects.
Posted by: Jeff Wimble on August 6, 2003 01:47 PMSimple - go charge something on your credit card. Loans create money.
Posted by: jimbo on August 6, 2003 07:43 PMLoans do not INVARIBLY create money. Some do, and some don't.
Del Simmons has the only right answer here -
Being productive and creating value is the only way to increase the "money supply". Printing money doesn't do it..
Loans only help when the person who takes out the loan uses it to increase his own productivity or the productivity of others, (usually by hiring them).
Posted by: Bones on August 6, 2003 07:52 PMNope, sorry. Bank loans are money, at least most of it (the rest is made up of cash and fed reserves). "Increasing productivity" is nice, but it is a phenomenon if the real economy, not the financial economy - it has nothing to do with the money supply.
Posted by: jimbo on August 6, 2003 09:58 PMComments are Closed.