I'm not sure you saw this post by David Andolfatto reacting to Ron Paul's comments that the Fed can create money "out of thin air"?
-H/T Economist's view.
Just in case you missed it, it is worth a "touche" chuckle.
If you just want the Cliff Notes money shot:
"But I am missing the point: The Fed has the ability to create money "out of thin air!" Whenever I hear this expression, I chuckle. We all have the power to create debt out of "thin air." When Microsoft creates shares to finance an acquisition, it creates the shares "out of thin air." If you bum a beer from a friend and promise to repay him next week, you create a debt obligation "out of thin air." Ooooo..."out of thin air!"
PS- Do you think Ron Paul has a response? I don't follow Paul closely though I do find he has certain endearing qualities. How can you not admire someone who votes "no" 95% of the time? Predictability can be good.
Total USA Debt
1 year ago