|
|
Dear Ben,
The answer is yes, "deflation" is what we want. Because we realize
that a "normal" level of inflation through credit expansion is
impossible at this point and deflation is the shortest route to renewed prosperity.
But we also know that you will not let it happen. You will not let the piper
be paid by those that owe the piper. You will make sure that payment to the
piper is spread as far and wide as possible. You said so in 2002 in Deflation: Making Sure
"It" Doesn't Happen Here.
We know that aggregate demand for new debt is dead, making it oh, so hard to
push on a string that has no one on the other end to take up the slack
(except, of course, the USG). And yes, we do know that you have other
options, as you told us in your speech. Just because we don't want to borrow
more money from you doesn't mean we won't take your freshly printed cash when
you offer to buy our garbage at crazy prices.
But don't worry, Ben. We know it's not all on you. Your hands are pretty much
tied. This was baked into the cake long ago. We had the chance to pay the
piper by letting the price of gold explode freely many times, 1961, 1968,
1971, 1980, 1999, 2008 (and a few others that never made the papers, but I'm
sure you are aware of) and each time we pushed the true and necessary
devaluation of the dollar off into the "great unknown" future.
Here, read this. It might make you feel better to see how powerless you
really are. It was written two years before you were even in public service,
two years before your famous speech, back while you were still teaching 'nomics in Jersey.
FOFOA
FOFOA is A Tribute to the Thoughts of Another and his Friend
Donations are most
appreciated, just click
here
|
|
