Guest Post: The Deflationist Error

Tyler Durden's picture

Submitted by Alasdair Macleod via,

Many people believe there is a significant risk that the Irving Fisher debt-deflation theory of great depressions is still an economic threat today. They overlook the fact that Fisher published his theory examining debt-deflation events under a gold standard, which does not apply today. Financial credit contractions therefore take a different appearance.

The events he described arose as a consequence of the earlier expansion of bank credit in a fractional reserve system when the currency being used was convertible into gold. This was the case until 1933, when Fisher wrote his definitive article for Econometrica. Under those circumstances, it is obvious that contracting credit leads to a self-feeding liquidation of assets, driving their prices down, and an increasing demand for money, i.e. gold. This was reflected in the gold revaluation that took place that year.

This is not the situation today. The absence of the gold discipline allows central banks to replace credit with quantities of raw money sufficient to ensure that Fisher’s debt-deflation is bought off.

Another way of looking at it is in the context of the aftermath of the banking crisis five years ago. Before the banking crisis both banks and their customers were happily expanding their credit and debt respectively, and it was the crisis that brought a sudden end to those care-free days. There was a sudden switch in behaviour that Irving Fisher would have recognised as tipping us into a debt-deflation depression. Initially, the price effect was dramatic: in the UK for example, new luxury cars suddenly became available at discounts of up to 40%. It affected Europe and the US as well, which is why governments stepped in with scrappage schemes, cash-for-clunkers and so on. Other capital goods, such as property were similarly affected.

What had happened was an increase in preference for money over capital and consumer goods, or a dash for cash. The price effect was contained and reversed through unprecedented government intervention by TARP and other programmes in the US, and by bank rescues in the UK and Europe. This has been backed up by quantitative easing and zero interest rate policies that persist to this day.

Fisher’s debt-deflation event happened five years ago and was bought off by ensuring banks had enough new money to ride out the storm. None of this would have been possible without the freedom to expand the money quantity indefinitely. No longer do we have to find gold to repay our creditors.

Now we can consider a second question: will gold be sold in order to pay back currency-denominated debt?

This could be a factor when gold is widely owned, but it is not. The recent shake-out in gold prices has certainly taken care of that, and there has been a substantial transfer of ownership to Asian countries and Russia. These new owners generally regard gold as a refuge from paper money, not as an asset to liquidate to pay down debt. To them it is super-money, to be hoarded.

It is indicative of our economic biases that we completely overlook the differences between the sound money of 1929/30 and the infinitely expandable money of 2008/09. We make this error because today’s economists lead us astray with a fundamental belief that the state through monetary intervention can fix everything.

Even though today’s economists are a broad church they follow beliefs instead of well-reasoned economic theory. Beliefs are better left to clerics.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tinky's picture

Thanks for the useful and economical post, Alasdair.

The Shootist's picture

Alasdair sounds very well versed in Austrian economics in all his interviews. Smart fellow he is.

DoChenRollingBearing's picture

I will always continue to buy gold, at least from time-to-time.  But because of the wild volatility and the fact that short-term buyers could be hurt, I will try to refrain from telling everyone else to buy.

Unless you have children or plan to.  Then you must buy gold for the long run.


The Central Bank of DoChenRollingBaring reserves the right to buy gold at anytime, announced or not.  If someone wants to buy gold, they will have to look elsewhere as our contral bank will never sell.

LetThemEatRand's picture

FED disclaimer*

*Past prosperity is no guarantee of future results.  Now eat shit and die.  And remember the planet and your desire not to live in a FEMA camp before you print this disclaimer.

All Risk No Reward's picture

We are not under a gold standard - that much is true.

But we are under a debt money bankster tyranny standard, but the author appears to not understand the subject well enough to suss out the ramifications thereof.

Let me offer my services to help him out.

>>The absence of the gold discipline allows central banks to replace credit with quantities of raw money sufficient to ensure that Fisher’s debt-deflation is bought off.<<

Incorrect paradighms does not reality make.  Let me repeat for clarity - just because one thinks something is happening doesn't mean it is happening.

The author is wrong.  Raw money is not being replacing credit.  The author is making chit up - and that's not nice.

QE does hand money over to banksters for their toxic trash at par value, but that isn't issuing raw money.

Someone needs to clue this clueless author that whatever losses the Fed takes FLOWS THROUGH TO THE TAXPAYER!  That cash being handed over to the banksters IS DEBT BASED!  The debt associated with whatever difference between the toxic values and the cash issued will come out of society in terms of blood, sweat and tears.

This money printing Big Lie fallacy has to end - it really does a disservice.

Mises nailed this one...

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."
~Ludwig von Mises

Now, go find a pretty bright 5th grader and lay out the following scenario for him/her:

1. The banks run the monetary system and finance their operatives in government to do their bidding.  The banksters determine monetary policy.

2. The banksters control trillions in cash through their various mega front corporations.

3, The banksters control trillions in debt instruments with trillions in assets as collateral.

Given this information do the banksters...

1. hyperinflate, bail out the debtors and wipe out the value of their trillions in cash and debt or...

2. stick a deflationary spiked pit ahead of the eventual hyper/inflation in order to bust the debtors, wipe out their non TBTF&Jail competition, seize the indebted assets of Earth, buy up the leftovers for pennies on the dollar and proclaim themselves the rulers of an enslaved population to inextinguishable debt?

What answer do you get from a kid who can evaluate facts without the prejudice that has been instilled in the older folks?


This is basic, basic, BASIC cost benefit analysis.  If my front corporations are TBTF&J, I want to collapse all my non TBTF&Jail competition so I'm the only one standing afterwards.

Duh!  Double Duh!

I was just reading Machiavelli's The Prince today and he was very clear - when you try to conquer control of a country used to liberty, YOU HAVE TO CRUSH THEM!  There is no half stepping, because people used to liberty, or at least the illusion thereof, will not be conquered easily.




You can bet youyr bottom dollar that the international banking cartel is well versed in the Art of War (war is all about deception, the best warriors never have to fight, never ending war will bankrupt the nation) and The Prince (conquer them from inside using their own people and absolutely crush them when the time comes).

Debt Money Tyranny

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. The one aim of these financiers is world control by the creation of inextinguishable debt.”
~Henry Ford

markmotive's picture

Nick Barisheff is still calling for $10,000 gold

Sounds nuts on the surface but he makes a solid case.

All Risk No Reward's picture

Nick may well end up right, but you would do well to set yourself up to weather the deflationary spiked pit trap that is set up to convey the indebted wealth of the world to the bankster front corporations.

Anyone who thinks the banksters will bail out debtors at the expense of the banskters isn't actually thinking clearly.

One of debt money's attributes is that it is a societal asset stripping mechanism.

The textbooks won't tell you this, but if you understand third grade math and debt based money, that is what it is.

If the international banking cartel (IBC) lends a nation $20 @5%, the nation owes $21 in a year's time due to a bookkeeping adjustment that adds a $1 interest liability to society and $1 interest asset to the IBC.

Society owes $21, yet only controls $20.

Oh, a national park was put up as collateral, the IBC takes possession of it.

Now you know why the Federal government owns over 30% of the country...  handing it over to the IBC, the people who finance politicians into office, will be very streamlined.

If you think I'm kidding, again, you aren't thinking.

limit_less's picture

ARNR - There will be no deflation. The banks and governments and more indebted than anyone ergo they will be effected the most by deflation. Governments and banks will be going to the wall before the population. 2008 as an example.

There is only one way deflation can happen without governments and banks going to the wall and that is if the government and banks manage to transfer their liabilities onto the citizens through massive and unpayable tax increases. The "massive" gets the revenue on the short term, the "unpayable" leads to mass repossesion of property due to unpaid taxes.

In short expect inflation coupled to comparable levels of tax increases.

ATM's picture

He makes one other mistake. He states that the Fed buying worthless debt from the banks at face value is not money printing. In fact that is exactly what it is.

All Risk No Reward's picture

I epxlained this but you may well have missed it.

It is not money printing.  Why?  Read carefully:

The difference between the toxic trash's real value and the par value paid to the mega banks is debt to the Federal Reserve which will be transferred to the American people in due time.

If the Fed would just erase the difference and call it even then you'd be right.  But they won't because they are banksrters hell bent of jacking an ignorant American population and they gain power by 1. looting our monetary wealth and 2. burying us in inextinguishable debt.

All those trillions in losses that the Fed is eating will be the debt of the American of the people.  Just because they haven't bothered to tell you this yet doesn't make it any less true. 

Stealing from people who don't know they will have to pay back the stolen money is so, so much easier than stealing from people who know the theft will make them bond slaves.

If the citizens have to pay the Federal Reserve's debt, as the current law stands, then they are not printing money, rather, they are issueing cash in advance of admitting the value of the debt used to create the cash.  All that has changed is the timing of debt issuance - that's it.

sessinpo's picture

limit_less  " There is only one way deflation can happen without governments and banks going to the wall"



This is erroneous and what most inflationist proponents miss. At some point with to much printing, the cost becomes to high, i.e., higher interest rates. Dollars, cash, become more valuable. It beomes more of an advantage to pay for a 30k car in cash then to borrow money to pay for it at 10% interest.

Inflationist look to the 1970's and mistakenly think this is the current situation. With depressed real estate prices that are likely to sink further, that does not provide the wealth effect to borrow more to support real estate price increases.

This is more of a setup of broad based price declines in all markets.

Do you really think that the notion of massive printing is new? That is ridiculous. This has occurred many times over with the same result.

Unpaid taxes has nothing to do with it and that is a ridicoulus statement. If you confiscated all the wealth of America, you would still not be able to pay off the national debt and unfunded liabiliities.


MeelionDollerBogus's picture

"Do you really think that the notion of massive printing is new? That is ridiculous. This has occurred many times over with the same result."

never has this been the result. Deflation requires a precise & targeted move to remove money from circulation, including debt, which is suicide.

MeelionDollerBogus's picture

The only way to "prepare" for this "deflation" is to ensure that today you acquire less needed tangibles than if prices dropped & availability remained the same.
That's quite the risk. If I can afford the necessities today I'll buy today expecting higher prices tomorrow. Waiting for dropping prices then seeing no such condition for things I actually need leaves me empty handed at the worst possible time.

All Risk No Reward's picture

Deflation is more about zeroed accounts than products getting more affordable.  For most, lower prices will become less affordable as their bank account, pension and investment accounts will go up in smoke.

This is no joke - these banksters mean to do violence to you and yours.

Alexandre Stavisky's picture

Print and print forever.  Crushed people don't bend to open tyranny easily.  Often it erupts into the worst unrest and unknowable outcomes.  They will choose printing.  They may "row" with Crazy Ivan head fakes of deflation from time to time.  But continual effusions of thin air money will placate and pacify the populace while they may continue in an unharried relatively happy lifestyle.  Believe it or not, the elite want to enjoy the fruits of their station.  Wealth, status, station, dominion has no meaning when everyman could be an assassin.

Therefore Machiavelli takes a new world turn (it is bounded by the Pacific).  Pacify the population and lengthen out this horrible dilemma.  Even if one were to run a mock module or simulation of outcomes, inevitably pacification and printing would be top choice.  Money is not the ultimate object.  It is that unquantifiable part of society of good manners, respect, noncombativeness, GRACE.

Take GRACE, but keep money...and it is unspendable.  No, this New World is the breadbasket of the entire globe.  Despite leadership, White Face Pay, is the maxim.  The vanguard of humanity rests upon that (sometime unmoneyed) elite that keeps the cogs of the global machine whirring and output at regular pace.  Without it the world has no meaning and would be like some dandified Wall Streeter walking into an Haiti slum with all the protections and global sinews cut.  PURE MEAT.  Slay away.  No repercussions to the stripping of wealth.

Wealth has no meaning without protections from its plunder.   Wall Street desires those protections as it goes about denying it to others.

Just when does the fulcrum shift and they are to be bereft?  Printing is the only path.  A path that leads to destruction, but a much later destruction than any other roads less taken.

All Risk No Reward's picture

Declarative statements don't necessarily turn into facts.

Do you really think the banksters are scare of people they call Muppets after they rip their financial faces off?

Do you think Corzine is worried about the people he Muppetted?

I would agree with you they should care, but I don't think they are capable.

Are they worried about the people they bomb into oblivion so they can loot a county's wealth?

Are they worried about families of the 20-30 million people they murder each year through their debt based monetary system that systematically impoveirshes and starves people to death?

I don't think you know the depravity that lies at the base of these people.

Deep down you know a deflationary spiked pit would ruin the every day, debt saturated American.  The very reason you think it won't happen is, in fact, the very reason it will happen.

When it does, understand that this was a plan and understand who did it to you, because these same criminals will foist up some new lying politician sell out who will pretend to be the savior for the problems they engineered.

tarsubil's picture

I agree that the tide will go out when things get close to the realization that the debts cannot be paid back. But the author is correct, after this credit crunch the money base will be expanded in response to make the banks whole. This is the theft. The idea that the banks aren't going to want to print because that would cause inflation and devalue the cash they are holding seems odd. The cash they are holding is not actually worth anything since it can be created out of thin air.

"The banksters control trillions in debt instruments with trillions in assets as collateral."

Like MBS? The trillions in debt are not covered by assets. When this reality gets more and more undeniable there will be deflation. The banks will need more money to stay solvent and this will lead to inflation. The banks do not want to hyperinflate away. It has nothing to do with want; it has to do with the undeniable conclusion of debt based money. The debt can never be repaid and it requires the continual injection of more money into the system to keep going and the injection of money must accelerate or there will be deflationary credit crunches. This will lead to long cycles of inflation and sudden short moments of deflation until the psychological step is made among people admitting that debt based paper money is worthless (ie hyperinflation).

Cheduba's picture

Discussions of inflation/deflation never seem to bring up the quadrillion dollars in derivatives, oddly.  I am fully aware that central banks can just print a quadrillion dollars, but it seems more logical that everything will play out the way All Risk has described - the banks will be made whole on their quadrillion dollars of imaginary bets by confiscating real assets and enslaving the rest of humanity to "pay them back" for all eternity. 

AIG was bailed out with taxpayer dollars, making us responsible for paying back AIG's phony derivative bets they owed to Goldman Sachs.  I don't see why this wouldn't continue to happen in the future.

What terrifies me is if we all have to keep our debt and pay it back in a currency with a completely different value.  Let's say someone has tens of thousands in debt and suddenly your wage is equivalent to $0.10 an hour, but you still have to pay your full amount plus interest.

"If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered." Thomas Jefferson, Letter 1802 to Secretary of the Treasury, Albert Gallatin

We know how this plays out from the Great Depression.  Obviously by ZIRP and global money printing, we have extended the inflation part of the Jefferson's quote for several years, but we still haven't seen the deflation part of the reverse bank robbery.  What if the plan of the bankers is to implement global deflation to strip mine everything left on the face of the earth into their hands?

Vampyroteuthis infernalis's picture

What the author misses is debt-deflation started, but never took its full course. Most of the debt on the books before 2008 is still there. In fact, the debt pile has grown.  When you take into consideration the amount in derviative and in the shadow bank, the CBs are going to have to print quite a bit more of Bennifebux to prevent debt-deflation. The cost of most items are artificially being overvalued by cheap credit/debt.

booboo's picture

there is only one chair for each production backed dollar and there are ten thousand assholes who think that chair belongs to them and they have the paper to prove it(Bwaaaahahahahaha). You figure it out.

putaipan's picture

a priest, a spook and a banker walk into a vault .....

InspectorBird's picture

Can somebody point me to some cases in history, where fiat money regime collapsed in deflationary spiral? I would like to study those cases...

limit_less's picture

What would be the point in a fiat currency if there were deflation? Surely the whole point of a fiat currency is so inflation can be created, otherwise we would just use Gold.

Surely "fiat currency deflation" is an oxymoron.

MeelionDollerBogus's picture

indeed. To cause it must be a deliberate act & to do so always causes self-injury.

sessinpo's picture

From article: "Under those circumstances (money backed by gold), it is obvious that contracting credit leads to a self-feeding liquidation of assets, driving their prices down, and an increasing demand for money, i.e. gold."

And perhaps you can tell me when eventually contraction of credit or money supply does not lead to self-feeding liquidation of assets? My point is it happens whether it is backed by gold or not and that is the fallacy of Alasdair's post.

Everyone seems to miss this. Economic booms lead to excess in liquidity and over capacity (mal investment). That turns into a bust and that occurs with or without gold as the backing of a currency.


Did you know that the US had a depression prior to 1929 and before the Federal Reserve?



ClassicCommodity's picture

The assumption deflationsists have long term is pretty laughable. That Those silly bits of paper are going to buy more things LOL. Ok then.

LawsofPhysics's picture

Indeed. No society/currency has ever collapsed/died because thier purchasing power was too strong. Deflation is progressive propaganda.

dunce's picture

I think there was a country that went down despite a strong currency but not because of it. That country is Spain after they stole all the gold from the new world. The primary causes of their failure was a political system  of hereditary dictators with the consequent central economic planning and control that misallocated capital to a spectacular extent. Historians do not see it that way, but most historians know nothing of economics.

Praetor's picture

Plus constant wars in Europe depleting the teasury.

All Risk No Reward's picture

Everything is relative to the banksters.  Did you know that Weimar was a deflation from the perspective of the Western banksters?  Did you know that Argentina was a deflation from the perspective of the Western banksters?

Stop thinking like a serf and start thinking like a financial oligarch.

This isn't checkers, this is 4 dimension chess and that isn't bankster rain on your leg.

All Risk No Reward's picture

Your thinking is too myop[ic, too limited.

Inflation **is** the end game almost certainly.

But what you miss is the fact a deflationary spiked pit preceeding that inflation will act to convey the world's hard goods to the banksters who run this system by busting debtors and allowing their TBTF&Jail front corporations to buy the rest up for pennies on the dollar.

They inflated when it served their purposes.  Now they are looting the economy.  They will begin to bust the economy and consolidate it under their control.  Once they own almost all the hard goods (meaning society will own very little, THEN they will hyperinflate to "balance their books" and proclaim that "capitalism failed' when we live under Debt Money Tyranny with a capitalist veneer.

Most of the people who are right about inflation being the end game are going to get **COLD CRUSHED** by what preceeds it... 

What preceeds it will occur because it benefits the people calling the shots - period.

If you think people who hold trillions in money and trillions in debt are going to hyperinflate their paper wealth away, you are less savvy than you think the bankstrers must be.

InspectorBird's picture

I agree with your logic, but you forget one thing. The moment banksters create deflation, then governments will HAVE TO legitimately default, and no shenanigans, they will have to truly default on naional level. If that happens, governments will likely lose control over people. I dont think this is what they want.

All Risk No Reward's picture

IB, I appreciate the dialogue.  I have considered that and I observe my government preparing for battle with the American people...  the police state and military are not funded by tax dollars, but by the issuing of debt via the Federal Reserve.  The police and military are extensions of the banking cartel, NOT America where people recite the Pledge of Allegiance as the Republic lay in ashes.

My premise is that there is no way to avoid a confrontation between the criminals and the people.  Lord Acton highlighted this as the fight of the millenia and he was right.  The mega banksters vs the people.

So what has the bankster financed government done in the past 1-2 years?

1. Declared America a battlefield - NDAA.

2. Declared the right to assassinate anyone they want without trial or public display of evidence, even on American soil - NDAA

3. DHA has purchased 1.6 billion rounds of ammo "to save money."  Uh, one doesn't buy 100s of millions of hollow point ammo to save money, so they are lying.  Search "1.6 billion bullets Forbes" for more details.

4. DHS put an order in for "no more hesitation" gun range training targets of an American looking child, an American looking pregnant woman and an American looking set of grandparents.  I couldn't make this up.

5. The military is free to be let loose on American soil.

6. An Army manual has been put out that speaks of detaining American citizens.

7. The demonization of everything libertarian or Constitutionally oriented on the propaganda networks.

8. The spy grid where Americans are all deemed potential terrorists that need to be watched.

The point is that collapse is coming and the people are going to be mad.  One versions burns trillions in bankster wealth and the other hoists them up as King of the World.

Do you really think a bankster would be able to turn down King of the World?

I don't.

One could even argue that they sit offshore and want to cause a civil war in America so they can then make the case to disarm populations and countries and consolidate military power in the bankster UN military forces.

"Today Americans would be outraged if U.N. troops entered Los Angeles to restore order; tomorrow they will be grateful. This is especially true if they were told there was an outside threat from beyond, whether real or promulgated, that threatened our very existence. It is then that all peoples of the world will plead with world leaders to deliver them from this evil. The one thing every man fears is the unknown. When presented with this scenario, individual rights will be willingly relinquished for the guarantee of their well being granted to them by their world government."
--Henry Kissinger, Speaking at Evian, France, May 21, 1992. Bilderberg meeting.

Russia To Share Military “Security Experts” With United States During Mass Disaster Incidents and Emergencies

Chit is gettin' real.

limit_less's picture

Inspector - I dont think it is about control but profits. How are the money centre banks going to stay afloat if their biggest customers go out of business ie governments? At best their income is going to be slashed if they dont have governments borrowing money and the taxpayer servicing the huge debt.

MeelionDollerBogus's picture

It can't be about profits. To show profits and/or spend them requires only fraud and/or money printing. They can do that endlessly now: no prosecution for criminals caught in the light of day.
This is about power that can be bartered only by threats, influence peddling & war. Those stand upon the influence of central banks & drones now.

All Risk No Reward's picture

Read this chapter of tragedy and Hope (1966):

Quigley lays it all out in the open for those with eyes to see.  That chapter is mind blowing if you understand the truth of what he says.

All Risk No Reward's picture

Have you ever stopped, taken a deep breath and considered, just for a few moments, the true meaning of "Too Big To Fail (and Jail)?"

Do it.  They want to be the only institutions left standing.

Sure, they may get 1/10 out of each person, but with their competition annihilated, they will have more than 10x the "serfs" shopping at the "company store."

Not to mention nearly everyone will be renting from them if they want to live off the streets.

Have even considered that the Rockefellers and the megarish don't pay any taxes on their mega estates while you get bonoe nicked?  You should.

"The game is rigged, the table is tilted..." -George Carlin


moneybots's picture

"The assumption deflationsists have long term is pretty laughable. That Those silly bits of paper are going to buy more things LOL. Ok then."

Fiat Japan has deflated now and again over the last 20 years.


I don't konw of any deflationist that expects long term deflation.  The 1930's deflation lasted a few years during which the DOW deflated 90%.

All Risk No Reward's picture

Denninger is thinking about 10 years and Nicole Foss thinks along similar lines.

My view is that it will last as long as the banksters need it to mop up the public's indebted assets that they formerly thought was their own before paying it off.

People WAAAAY underestimate the RAW POWER of controlling the money supply of a nation. 

I hate to break it to you, but the mega banks and the Federal Reserve are ALL controlled by the same international banking cartel.

That's why they don't rat each other out.  They are all just a piece on the Grand Chessboard used by the Grand Chessmaster to conquer his opponent (that's you and yours, as well as me and mine).

I don't know how long it will last, but I am trying to learn how to garden and I do feel uncomfortable not having more land on which to garden and raise chickens and goats.


The Shootist's picture

Gold is "super-money," or just actual, veritable money.

q99x2's picture

I liked the article.

On another note: Egypt sovereign debt against default in the credit default swap (CDS) market has risen to record highs.

digalert's picture

Remember, back in the 1929/30 days, gold was money. Not today though, the Bernanke even said so.

sudzee's picture

I'm lookin forward to the day bonds and stocks drop bigtime. The demand for dollars will be ginormous resulting in one physcal dollar rising to 750 digital dollars. I'd be able to take 500 or so physical dollars from the Bank of Sealy and run to the BoA and pay my morgage in full.

The Shootist's picture

I bet that's less likely than $10,000 gold.

DoChenRollingBearing's picture


It ia always smart to have some physical long green $ around for the unexpected.  I don't know about that ratio, but if they close the banks or freeze the accounts, CA$H is king, at least for a while.

PiratePawpaw's picture

That has been my position. I have maintained a sgnificant cash reserve in my safe with the expectation that, if and when its begins to fall apart, cash will for a time be king.

All the while I have been steadily increasing my holdings of physical assets.

But to be honest, the way things have been going lately, I dont know what the hell to do. I think I am just continueing out of habit rather thsn confidence im on the right track.

delacroix's picture

It costs 3 cents to print a bill in any denomination

All Risk No Reward's picture

I think most digital dollars get zeroed out, starting with the fractionally reserved banks "deposits."

LetThemEatRand's picture

"Even though today’s economists are a broad church they follow beliefs instead of well-reasoned economic theory. Beliefs are better left to clerics."

Amen.  But can we get rid of the clerics too?