A Mental Walkthrough on how the United States monetary system actually works!

show me any banker whore who thinks it.

 

Milton Friedman.

Seargant and Sims, the two most recent Laureates, have argued that policy-makers cannot systematically manipulate the economy through predictable policy changes. The premise of this argument is that actors in the economy will expect future government policy changes. Sargent made important contributions to the theory with his application of new mathematical techniques to econometric models designed to account for such expectations.[3]

Sargent said that policymakers can’t manipulate the economy by “tricking” people with policy surprises. Central banks can’t permanently lower unemployment by easing monetary policy, because people will rationally anticipate higher future inflation and will strategically insist on higher wages for their labor and higher interest rates for their capital.[3]

http://en.wikipedia.org/wiki/Thomas_J._Sargent

He is talking about the failures of central economic planning of the currency.

 

Milton Friedman is not a recent Nobel Laureate, lol. And Thomas Sargent doesn't say that the gold standard is more efficient.

 

He still has won the Nobel Prize in Economics. He was an advocate of a gold standard (assuming small govt).

No, he says that the free market is better at regulating what the central economic planners regulate. Do you think the free market would use fiat currency in the absence of government force? Lol.

 

He does not say the free market should have a choice of the currency they use. And he doesn't say fiat money is bad, he simply doesn't believe the Govt can "trick" people in to doing something by manipulating policies.

 

The selective reading fundamentals which your mind employs baffle me. I've been quite entertained by this entire thread, and two+ years later, you are still wrong...