Thursday, May 9, 2019

Learn Economics Topic Seven

7. Helicopter Money:

Helicopter money has been called QE for the people but that is not quite right. I will list some important points I have found from reading Lonergan regarding this subject. Turns out, HM is the opposite of QE.

Kyle Bass discusses QE, but more importantly, he opts for helicopter money as the only way out of our worldwide financial malaise.

Helicopter Money, Not Bond Destruction, Must Replace Debt Forgiveness

Bonds could not be retired until and unless a substitute could be found for them in the financial markets. That is just reality.

Fiat Money, Helicopter Drops, Zuckerberg and the Big Myth

How do we weigh the debate about money, whether it is fiat or something else? This question has been at the forefront of economic debate since President Richard M. Nixon took US currency off of the gold standard.

What I do hear is a lot of talk about helicopter money, and we should at least get that discussion correct. When Bill Gross speaks, people listen.

You want fiscal responsibility? Then understand and promote the concept of helicopter money as it was meant to be.

We face the threat of an expanded Fed balance sheet, zero lower bound in the next downturn, and the inequality of wealth, seemingly ever increasing. Helicopter money will simply have to be considered as a means to evening out the money supply.


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While I have supported some economic policy, it turns out that racism was a strong motivator for some of those policies. I oppose racism in all forms and prove my commitment by rejecting anything other than the Westphalia or Westfalia view of sovereignty, which is mutual respect for all nations by all other nations. 

Perverse sovereignty is as bad or even worse than excesses in globalization which gives banks power over governments. Both are ultimately bad for America. This blogger supports free trade and opposes a border tax. But government should be stronger in order to rein in big banks who abuse the people with toxic loans.

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