Gyroscopic Investing

Wow, something positive about Harry in this article. 

http://www.forbes.com/sites/jamesgruber ... -insanity/

It's an interesting article with some food for thought in his charts. I have not been big on the deflationary argument for a while. But who knows he might be right. Either way though I like the PP.

That is some scary shit.  Directly monetizing ETF's and REITs?  Reductio ad absurdum.

MachineGhost wrote: That is some scary shit.  Directly monetizing ETF's and REITs?  Reductio ad absurdum.

While it wreaks of cronyism, I'm not sure how "scary" it is in terms of economic collapse the article speaks of.  Though this is the ultimate experiment so us MR'ists and Austrians should sit around with popcorn waiting to see what happens... 250% debt/GDP, mass monetization, huge deficits still. This is juicy stuff.

On a side note, I find it funny how these articles talk about "more money in circulation," like the fed (or BOJ) is sending us QE welfare checks or something like that.

I wish the government would just overtly come out and make treasury bills, notes and bonds legal tender so we could get over this idea of looking at M0 "skyrocket" and freaking out that inflation is coming.

All buying treasuries with cash essentially does is lower the floor interest rate at which banks will possibly lend. The question should be not are we printing too much money, but are we creating a far too-lenient lending environment by setting that floor too far below the rate of expected inflation.