What this Country Needs is a Helicopter Drop of Money

Our money is backed by something. That is the ability to tax or confiscate everything you own or think you own.
What happened in Germany after WWI was not due to excessive printing, excessive printing was the result of the root problem which was loss of production. Hyperinflation is not and never has been a result of monetary policy, it is a result of the loss of production. In Germany's case, it was due to the fact that everything produced in Germany was being exported to pay war reparations.
While it is possible to have inflation due to monetary policy, hyperinflation requires that the money being produced has little or no products to purchase. It is the worst of both worlds. The exact same thing happened in Zimbabwe. It was the loss of production due to land reforms that caused the hyperinflation not the printing of money. The country's production fell by nearly 80% which skewed the supply demand balance and caused hyperinflation. Japan on the other hand and the US to a lesser extent have seen virtually no inflation and in many cases deflation despite decades of rampant money printing.
So long as there is adequate amounts of production, hyperinflation cannot and will not happen.

 

Good points. Also the recent Venezuela crisis which conservatives will certainly use to compare with the United States. Venezuela crumbled because oil prices plummeted and half their economy relies on their oil production. As you say hyperinflation does not cause the problems, it's the result of a problem with a country's ability to produce. The United States has no such problem. We can actually produce far more than we are right now.

 

To illustrate that...the Industrial heartland of Germany ..The Ruhr...was taken from Germany just when they were saddled with massive reparations.

They're ability to produce was greatly hampered.

 

An economic scientist would not have to resort to such fallacies in lieu of an intelligent argument. And, it isn't just the "Austrians" who are saying these things. But you aren't an economic scientist, as much as you lie about being one. More like an economic gradeschooler parroting Krugman.

 

Not really. It's mostly Austrians that come up with these crazy theories. Mainstream economics is pretty understood by the majority of intelligent people although there are still some huge myths that are believed by a lot of intelligent people who aren't economists and have no understanding of monetary systems. But Austrians take the cake for being the weirdest cult theories out there. It's no shock that uneducated far righties gravitate towards that nonsense. Collect those canned goods, the black helicopters are coming for you!

 

If a bank shouldn't be investing in a business....then neither should the government. It's a bad risk....meaning the money is wasted. The dollar is devalued. It hurts everyone. In your scenetio government is creatkng a society where improving ones situation seems like a waste of time since free money awaits. People feel entitled and they clamor, protest and demand money drops. The banks aren't needed for loans.

 

No. You are wrong. Loans are a risk. Either a good of bad risk. And it needs money to back them.

 

I'm not wrong at all. A loan creates a deposit. It's money that came from nothing. Has nothing to do with risk. Because even if the loan isn't paid back the money still exists.

 

What is happening in Venezuela is really sad. People do not realize that socialism can in fact induce the same loss of production that cripples an economy and creates hyperinflation as war or natural disaster.
At some point I expect a refugee inflow from South American to the US which will mirror what is currently happening in Europe.

 

Sure it does. The money so created is backed by a hard asset. Money created to deliver for direct expenditure is worthless.

 

No, no and NO. Those folks voted for socialism. They need to understand what they did and the consequences and be examples to other people to understand the disaster it causes.

 

Absolutely 100% incorrect. The hard asset has nothing to do with the fact money was created out of nothing. They simply use that as collateral in case you don't pay the loan back. But at the end of the day, the money was still created and you have no clue who has that money or what they are doing with it. Just like any other spending from the government.

 

Then you deserve Obama, Obamacare, to have your paycheck raped, to be subjected to the humiliation of having your crotch felt up by another man, to have your telephone calls, and internet usage spied on by the government, and to have no say whatsoever in what your children are taught in school.....

 

What it DOES...is prevent job growth

And

The banks aren't needed for loans

What planet do you live on?

 

The government should not act like a bank or a business. They should be doing the opposite. That's the whole point of them being necessary.