Liberals Go From Printing Money to Counterfeiting Money

Daniel Greenfield, a Shillman Journalism Fellow at the Freedom Center, is a New York writer focusing on radical Islam. He is completing a book on the international challenges America faces in the 21st century.


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It makes sense really. If you treat money as an item that can be infinitely printed and whose value can be debased, that can be borrowed without end and it will only stimulate the economy, why not go to the next logical step by endorsing forgery?

That’s exactly what the Washington Post’s Wonkblog, minus Ezra Klein, has chosen to do in “Why Britain should stop wasting money designing coins and let the forgers win”. It sounds like Slate, but it’s really the WaPo.

The counterfeiter might buy an apple, say, without spending any real money. But there will be more apples left in the bushel for me when I want to buy one. And if there aren’t, perhaps there is a warehouse full of apples somewhere that a farmer hasn’t bothered to haul to market for lack of demand. I can’t really claim that the counterfeiter is harming me at all. The grocer won’t increase his prices very much if he has more apples to sell, since he will want to sell them to me at a price I can afford.

Counterfeiting is not simply a victimless crime in these conditions. It could conceivably be a service to society at large. The counterfeiter pays the grocer, who pays the farmer, who might be able to hire new employees or invest in new equipment, and everyone is better off.

Remember these are the people running our society now. They can’t conceive of long-term consequences. Only short term consequences.

Like them, the forger is just putting more money into circulation. And like them, the money is worthless.

Libertarian critics of former Federal Reserve Chairman Ben Bernanke often complain that his response to the financial crisis was simply to print money. In a sense, that’s correct. Under Bernanke, the central bank engaged in a program called quantitative easing to flood the depressed economy with new cash in exchange for banks’ financial assets.

… Indeed, many economists believe that the best approach for a government faced with a financial crisis is simply to create more money out of nothing and distribute it among the citizenry, essentially making all of us into forgers.

This, if nothing else, consistent. It’s also completely indistinguishable from a parody of Paul Krugman which is what makes it so wonderful. Prog economics now officially defies parody. Or embraces it.

 

  • A Z

    To live with geniuses like those of the WaPo is to live in HeII.

  • Judahlevi

    Quantitative easing is a controlled expansion of money supply which will eventually be pulled back by the Fed when conditions merit.

    Counterfeiting is an uncontrolled printing of fake money which does nothing to help the economy and, in fact, would create economic chaos with sky-high inflation.

    Anyone who doesn’t understand this should never be writing any article that has to do with finance. Liberals who write like this are just worse than worthless, they are dangerously ignorant.

    • A Z

      I don’t totally agree with the 1st paragraph, but it is the theory anyway.

      QE was a way to save over-leveraged financial institutions form themselves. I think we should have let a number of them or maybe all of them go bankrupt.

      QE has been a great blessing for Democrats.any time before in history they got beat up when the stock market was down. Now that the stock market is QE-inflated, the DEMS point to the stock markets as proof their ruinous policies work and they cry “All is well”

      the market has no fundamentals in the last 5 years. It is fake.

      • Judahlevi

        I agree that QE is partially responsible for inflating the financial market’s assets which gives cover to an anemic economy and recovery.

        Nonetheless, corporate earnings have been increasing which is a fundamental factor for the valuation of stock prices. Those earnings are coming from various means, but they have been going up.

        2014 will be the end of the combination of Fed stimulus and corporate earnings growth. Corporate earnings will begin to stumble. It will be a difficult year for the financial markets.

        • retired

          What have we here,an unreconstructed Keynesian?someone who thinks that we can fly through the sky by flapping our arms back & forth,if we only believe strongly enough that we can fly!
          1) They cannot stop money printing.If they do not continue to print Federal Reserve Notes(I hate to treat this printed toilet paper as money) the financial markets will blow up & take the whole economy with it! The economy is on borrowed time!
          2)What makes you think that the Fed. can soak up all of this excess liquidity whenever they get around to it?If they gave the economy what amounts to financial Chemotherapy in the massive doses needed it would kill the economy & take the F.I.R.E Industry (Finance,Insurance,Real Estate) with it.
          They would destroy those that they really work for,the big banks & financial markets(known in many quarters as the Shadow State).
          3)You have said that they will pull back all of these excess Fed. Reserve Notes when the economic situation merits it.The economic situation,as it exists today,will never merit it.The vital figures concerning today’s economy are manipulated & distorted by government statistics.All of the statistic are mangled & twisted to the point that they are worthless.We are heading for a Depression!

          • Judahlevi

            I am not a “unreconstructed Keynesian” nor a complete pessimist about the economy. Obama cannot by himself completely ruin our economy, it is bigger than the office of the president. He has made things worse, but he cannot destroy it.

            Keynes may have had a point with a no-debt government stimulating the economy during a recession, but not one with $17 trillion of debt. Free markets need to be self-correcting and left alone by the government.

          • retired

            The global economy is too far gone at this point to come in for a gradually orchestrated soft landing.The massive amounts of leveraged debt around the world can not possibly be paid without the pauperization of the Middle/working classes in the western world.The Internet & other alternate sources of information are telling the people what is in store for them,they will not put up with it!The economic problems will start to merge into the political.We see this in Europe right now where economic problems are causing great hardship throughout the middle classes.The EU Oligarchs & Central Bankers have a name for it,they call it “Austerity”.An updated version of “let them eat cake”.We can see the EU unravelling as it’s citizens are looking for some strongman who will “make the trains run on time”.We,in America,are not that far behind Europe in this unravelling.I believe that the USA could survive & Make the needed corrections if left to it’s self!But we will not be left to ourselves if the rest of the world is in economic & political turmoil & chaos.The rest of the world will find us & we will share in this turmoil!

          • paendragon

            It’s the American debt which is causing turmoil; right now, America owes more money than exists in the entire world.

          • paendragon

            The government, in ‘stimulating the economy’ by buying T-bill notes, thereby CANNOT remain a no-debt government.

          • paendragon

            LOL you beat me to it!

        • paendragon

          “Fractional reserves” (i.e: fraud, forgery, counterfeiting) is what is responsible for inflating the financial markets’ assets.

          Since most corporations are owned by the banksters, what you see as earnings are not really earnings at all.

  • UCSPanther

    I have heard of a Chinese Dynasty that in its dying days, tried the “printing more money” trick to pay for its reckless spending.

    All it did was devalue the currency and add additional nails to their coffin.

  • http://a-albionic.com/ Lloyd Miller

    QE is not stimulating the real economy much because banks are not loaning to businesses as they “normally” would due to various Obama policies discouraging such loans such as ObamaCare, Dodd Frank, ultra regulation, etc.. Corporate earnings of the large well positioned corporations are NOT INDICATIVE of the health of the overall economy.

    • Judahlevi

      You are right that corporate earnings are “not indicative of the health of the overall economy.” Nonetheless, they are used for stock valuations and will push stock prices higher and this was my point. As I said, these higher stock prices provide “cover” for an anemic economy.

      There are always people who till criticize Fed actions no matter what they do. Greenspan made mistakes, Bernanke made mistakes, and so will Yellen. Hopefully, they are minor mistakes and not major ones. The economy will tell us if their actions are correct or not.

      • swemson

        The increased earnings the corporations are reporting however, also consist of inflated dollars, so while there may be more dollars of earnings, their total purchasing power today is no more than, and possibly even less than that of the smaller number of dollars they earned in previous years. The same is true of other assets such as precious metals. Has gold really gone up in value? Or has the real value of each of the dollars it costs to buy gold today gone down…?

        It’s all smoke & mirrors, & everything, including the value of that most traditional of assets, precious metals, is being manipulated by the elites.This is even more true these days of silver than of gold. The historical relationship of the price of gold to the price of silver was 15 to 1. Today, gold is selling for 65 times the price of silver.

        Why would the elite bankers want to keep the price of silver artificially low? When you realize who inherited the massive short position in silver that Bear Stearns was sitting on when it collapsed, you’ll have your answer.

        http://www.swemson.com/upl/govt.or.private.jpg

        fs

  • Voyvod

    Counterfeiting is illegal because the Fed hates competition

    • Vince

      Like the comment, love the name!

  • Nobody Special

    If simply printing money is the answer, why collect taxes?