Why money-printing is like 'global warming'

Here’s a must-read post by Aussie blogger Jo Nova – and it’s not on her usual topic climate change. The title says it all: The Ground Zero of Global Corruption: it starts with The Currency.
It’s like this. The governments and their central banks make as much free money from thin-air through fractional reserve banking and other methods as they can get away with — it benefits those who “spend that new money first”. They spend it at current prices, and pay it back later, after inflation has decreased its value. The people who pay the difference are those who saved and held money while its purchasing power fell. Speculators grow rich, while retirees and savers get poorer.

In a free market this would quickly lead to inflation, and people would rush to the…

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One thought on “Why money-printing is like 'global warming'”

  1. What you say here may well be right, but as one free market, less government conservative to another I appeal to you not to make a big issue of questions which divide our side. In Watermelons you rightly argue that the Green ideology isn’t really about science at all, that the heart of it consists of economic fallacy about limits to growth, the nature of scarcity and the relationship between wealth and knowledge. You will do much better to focus on areas where the Left is hopelessly wrong rather than arguing about exactly which free market school – Austrians, monetarists etc – has the exact truth. Also, there are right wing cranks aplenty with fringe views about central banks, gold and so on: propagandists on the other side would like nothing better than to tar you with that brush. You are a polemicist and one of the best in the trade. Please concentrate on attacking the enemy.

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