That's kind of a Keynesian myth. That "fiscal policy" has significant impact on the economy. Whenever the economy is down they attempt to increase spending as the recommend medicine but nothing usually budges.
Also they can create money without government spending. If the Fed sets rates low then banks will want to maximally access the low rates because it's free NPV (net present value). That will issue up to an infinite amount of debt money if not restrained. The difference is cash will flow to businesses and people instead of government programs (of course though with debt attached). It will also do more to make the economy hot than any amount of fiscal policy will because interest rates set how speculative the market is. All kinds of over-speculative activities will appear productive. Whereas fiscal policy just vacuums up resources and prices more of the free market out of doing its thing.
People pretend fiscal policy does a thing but it doesn't really. Monetary policy does. Keynes thought you needed both because they would multiply against each other. He was an empiricist and didn't actually understand what setting interest rates do. He just saw money moving as an inherent good. Austrians actually understand the mechanics of what his suggestions do and also the downsides, and why liquidity traps aren't real.
I agree on CBDC. We already have slave money but they want to tighten the reigns on their slaves further. It may make the means of control more apparent though. For now if you tell people the use of USD is slavery they think you're just crazy. If you try to explain the math they will think you are crazier.
Log in
Yeah... But money is created as debt, so the economic system will crash if/when they stop creating debt as liquidity in the economy.
It's destined to collapse. It's inevitable.
That's why they want to bring in the CBDC programmable slave money, so they can keep a lid on the catastrophe.
That's kind of a Keynesian myth. That "fiscal policy" has significant impact on the economy. Whenever the economy is down they attempt to increase spending as the recommend medicine but nothing usually budges.
Also they can create money without government spending. If the Fed sets rates low then banks will want to maximally access the low rates because it's free NPV (net present value). That will issue up to an infinite amount of debt money if not restrained. The difference is cash will flow to businesses and people instead of government programs (of course though with debt attached). It will also do more to make the economy hot than any amount of fiscal policy will because interest rates set how speculative the market is. All kinds of over-speculative activities will appear productive. Whereas fiscal policy just vacuums up resources and prices more of the free market out of doing its thing.
People pretend fiscal policy does a thing but it doesn't really. Monetary policy does. Keynes thought you needed both because they would multiply against each other. He was an empiricist and didn't actually understand what setting interest rates do. He just saw money moving as an inherent good. Austrians actually understand the mechanics of what his suggestions do and also the downsides, and why liquidity traps aren't real.
I agree on CBDC. We already have slave money but they want to tighten the reigns on their slaves further. It may make the means of control more apparent though. For now if you tell people the use of USD is slavery they think you're just crazy. If you try to explain the math they will think you are crazier.