Politics & Philosophy by Dr. Martin D. Hash, Esq.
Even though the term “money supply” sounds self-explanatory, there are several iterations of it: M1, M2, M3, etc.; each more esoteric than the last. The simple explanation is that in an age before people understood that the supply of money was endless, and where inflation was seen as the great bugaboo, tying the amount of money to something tangible, like gold or debts, was seen as natural and preventive. Even when the absolute proof perfect that money is imaginary, Bitcoin, came along, people still tried to explain that the value of their coins were somehow tied to the number of computer operations performed to get them, and as those increased then so did the supply of Bitcoins. The reality is that the whole concept of money supply is an illusion to achieve a predetermined limited 3% increase per year.
In fact, the entire U.S. monetary system is tied to this anachronism: since borrowing increases the money supply, supposedly The Fed can limit it by increasing interest rates, but that's simply an illusion too, used to mollify economists & investors, and nothing more than a made up rule in a made up game; a minor one at that. Quantitative Easing, purchasing of Treasuries & bad debt, and indirect participation in the Equities Market are the Fed's real power, and those activities show there is an unlimited supply of money.
Categories | PRay TeLL, Dr. Hash
Filetype: MP3 - Size: 1.93MB - Duration: 2:36 m (104 kbps 44100 Hz)