• Printing money is the Fed’s tool to fight deflation.
• The Fed can also “unprint” money rapidly.
• Unprinting money is the Fed’s tool to fight inflation.
• Deflation can be triggered or fueled by insufficient money to support the potential production of goods and services.
• When newly-printed money is just sitting there not “chasing” anything, it doesn’t cause inflation or cure deflation.
• Deflation is bad; it hurts borrowers, frequently forcing them to default on their loans – which in turn hurts lenders as well.
Tuesday, August 30, 2011
Steve Conover schools Ron Paul, Rick Perry, Michelle Bachmann, Sarah Palin, a few Tea Partiers