Hello fellow Austrians, I shall admit upfront, I am skeptical of all the recent hyper-inflation calls and find them off putting. I cant quite figure out in my head why our central bank would willingly self implode. Perhaps of course, I am looking something to defend my position, but Ben’s recent sp…

I read your explanation, but there are two issues I have. First, why are you suggesting that the commercial banks with accounts at the reserve banks are not using their own real money? This is what Bernanke is talking about when he is referring to the reserve accounts. But lets say that did not us…

I’m not sure if I’m interpreting Bernanke correctly, but if I am I think he is basically correct. The last sentence says it all. Currently, we are experiencing a liquidity trap, which means that for whatever reason (I use the term “liquidity traps”, but I don’t agree with the Keynesian narrative on …

Currency in circulation is not the same as total money in circulation. It’s explained at St. Louis’s Fed site: Currency in circulation includes paper currency and coin held both by the public and in the vaults of depository institutions. This does not account for credit in circulation.

I realize this does not include credit in circulation. But if Ben is really printing 600 Billion for the purpose of government spending, then we would see this money in circulation really quickly. Will we not? To your first point, yes, banks can certainly start lending at some point and this would …

“why are you suggesting that the commercial banks with accounts at the reserve banks are not using their own real money?” Bernanke said "we create reserves in the banking system". What do you think he means by “create”? The wiki article explains it very well. "A central bank implements quantitati…

The explanation you are providing comes from an article from the BBC. Really? You are going to rely on the BBC to explain how QE works?

Bernanke is playing semantic games. Literally speaking, the Fed is indeed not printing money. However, they are creating money. He says it himself when he refers to “[creating] reserves in the banking system”. Dollar bills aren’t literally printed, but bank accounts are altered so that they’re bigge…

Are you disputing the facts presented there?

Am I? We have the Federal Reserve chairman in public explaining how debt monetization works. To counter that, we have a link from the BBC that also explains how it works. When it comes to economics, journalists are not exactly sources of wisdom. So we are asserting that Bernanke is lying, boldly,…

Bernanke's own words - " I am not printing money ". QE2 not what we think?

Economics Economics Questions

Smiling_Dave November 11, 2010, 7:39pm 2

He’s lying, as I explained here: https://forum.freecapitalists.org/t/article-claims-qe-no-change-in-the-money-supply/16456

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Bernanke's own words - " I am not printing money ". QE2 not what we think?

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