To: maceng2 who wrote (42195 ) 11/2/2008 6:55:51 PM From: Elroy Jetson 4 Recommendations Respond to That would be the St Louis Federal Reserve who suggested requiring periodic Tax Stamps on cash in order to implement a "negative interest rate. == Who was it who suggested putting a time component on cash so that it depreciated over time, to deter hoarding ? == the problems caused by excessive debt can be fixed with additional debt ", is a mental disease recently reintroduced by Anna Schwartz and Milton Friedman. This idea has previously occurred to others throughout history such as John Law, and virtually every addict. Addicts believe addiction is best cured with ever more of their favorite drug, a logic so obvious on it's face they can't understand why this is not accepted by all.Unfortunately, they also believed the converse is true - that "an economic depression can be cured or prevented by increasing the effective money supply" .the converse of a true hypothesis is rarely true . Just because my car is red, I cannot assume that all red cars are mine.Sadly this pathetic idea has had an obvious appeal to central banks, as it suggests they can control economic cycles . The sort of narcotic which gets one a prize named after Nobel. Their desire so fed their credulity that we now live in a world where otherwise sensible people have a complete belief in total nonsense.Policy does not allow a choice between depression or no depression, but between depression now or a worse depression later .
