The money supply must expand in order for the economy to expand at a reasonable rate. So a steady consistent rise in the supply of money is good for the economy. What was done in the Bush administration and what we are doing now is not good and is very risky.

Wild swings in the supply and velocity of money creates chaos and disrupts an economy. Even though people work less for a gallon of gasoline as you say SF, it has nothing to do with inflation but indicates the tremendouse increase in productivity of the American worker and the resulting increase in our standard of living - we can thank our free enterprise system for that.

Monetizing the debt is a dangerous practice and can lead to run away inflation. What I have read is the Fed has committed to stopping that practice, but what happens is the government has to borrow more from the public and interest rate starts to rise and this slows the economy. So there is tremendous political pressure to continue the practice. That increases inflation expectations and interest rates rise anyway resulting in stagflation - once you start down this road it quickly turns into a slippery slope.

The answer to your question - who cares!

Board Game Clue:
So when you murdered Ms Green in the library with the candlestick-- were you breathing at the time ?
One word answer only.

Inflation exist. It can be a detriment, but when we consider the cost of commodities say the number of hours one must work for a gallon of gasoline today as the number it took 20, 30, 40 years ago is a better gauge. Most have more buying power despite the spike in the cost of things.

KS, our free enterprise system is not going to be able to lead us out of our current economic situation because.

"Uncertainty rules the tax situation, the labor situation, the monetary situation, and practically every legal condition under which industry must operate. Are new restrictions to be placed on capital, new limits on profits? It is impossible to even guess at the answers."

This is a quote from Lammont Dupont in 1937, it was true then and it is true now. The main purpose of government is to provide a stable currency and environment for business and commerce to grow and prosper. We are not doing that.

Monetized-–mon-e-tize  [mon-i-tahyz, muhn-] verb (used with object), -tized, tizing.
1. to legalize as money.
2. to coin into money: to monetize gold.
3. to give the character of money to.
4. Economics. to convert (a debt, esp. the national debt) into currency, esp. by issuing government securities or notes.
and the answer is None? =)

According to the User Policy which is enforced by the You know who on a you know what basis there are several you know whats on this blog that have already violated the you know what policy....Why are they not you know --deleted?

1. It seems to have trick SF. I just have one question after I read his ramblings, HUH? Isn't rambling a you know what? As mentioned in the you know what?

2. This discussion relates to macro-economic matters. You must have at least an average IQ to ride this ride. Does the writer infer that all have less? So is this also derrogatory so the you know what says to delete?

Now as Cat, I did at least add a smiley face because I knew where Kenneth was headed. But I will delete mine because just incase someone thinks it violates the you know USER POLICY.

1.

SF do you know what it means to monetize the debt ? Just curious.

speechfree, is your position against a commodity backed currency a position FOR inflation of the money supply leading to a devaluation of the dollar? We wouldn't need a gold standard if the government, the Fed (not a govt entity) & our fractional reserve banking scheme wouldn't destroy the value of our fiat currency.

This discussion relates to macro-economic matters. You must have at least an average IQ to ride this ride.

It seems to have trick SF. I just have one question after I read his ramblings, HUH?

Ken,
A modern economy is not conducive to an archaic notion of say a Gold standard. If say we were to put a numeric value on just New York City and say the value of the city's inhabitants labor for a year [every doctor, lawyer, and money broker] there is not enough gold in Fort Knox. So paper money is the compromise to allow a larger then $14.33 trillion (2008 est.) GDP to happen seamlessly. The amount of cash in the pipe although a factor in inflation overalls bearing on things is trivial as it represents true wealth or goods and services. Unless we wake up tomorrow an the social contract that we live under dissolves and folks demand diamonds or gold for your cheese burger or water bill things will keep on trucking.