WSJ op-ed, Allan H. Meltzer of CMU screams bloody murder
FOrtunately, I’m not a politician. ANd I sure would cut off the Fed from free money.
>>How can a bank who can create all the money it wants to ever go insolvent?
They can’t. The country is destroyed by hyperinflation, except for the beneficiaries of
the hyperinflation. Hence my bill.
>(Hedin) How can a bank who can create all the money it wants to ever go insolvent?
It can’t. They become the beneficiaries of the flood of new money that nobody else
benefits from, and everybody but the banks are therefor destroyed by said hyperinflation.
And the banks say “Let them eat cake.”
Hence my bill.
Also, let’s say you increase the money supply, in the capital of the banks, by 500%.
They lend it all out at interest. Where is the other money to produce the income to pay
the interest? It doesn’t exist. I wonder if that’s why the banks aren’t lending much right now.
They have more money than the economy can pay interest on, maybe.