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Vertical and Horizontal Monetary Creation???

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Redmond posted on Tue, Jul 27 2010 9:02 PM

I was wondering if someone could give me a hand with this guys blog post -

he seems to think that the US Government is not Revenue Constrained -

And can basically print money forever with no downside - he is of the mind that even taxes are theoretically not necessary.

Also he thinks that the USA will never default...

http://pragcap.com/the-concept-of-vertical-and-horizontal-money-creation

Anyone got any thoughts on this?

Thanks

Redmond

"The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing" " Jean Baptiste Colbert"

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It would be closer to the truth that they don't want any counter-examples springing up anywhere that debunk their system in plain view for all the world to witness.  It makes it less obvious that they are wrong if all others do the same and get the same lousy result.  No pesky loose-ends like Austrians pointing out that x didn't spend and turned out best.

Another point to the Canadian experience - a the beginning of the latest bust, the conservative government was not going to spend any money on Stimulus - the Liberal and NDP(socialist/communist) parties screamed bloody murder...

A the latest G8 meeting(in Canada) Harper caled for global austerity in the G20... Obama said he would go along - we'll see.

Harper is an economist - studied under Tom Flanagan.

Later, he would advance to work on the company's computer systems. He took up post-secondary studies again at the University of Calgary, where he completed a Bachelor's degree in economics. He later returned there to earn a Master's degree in economics, completed in 1993.

Redmond

"The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing" " Jean Baptiste Colbert"
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