moon's entire premise broke down with that one glaring omission that he forgot about. I thought it was f'ing hilarious that he was so adamant about a clearly wrong position. Just ignorant.
Let me yet again post what I have already posted and you have ignored. This time I will use small words that you will be sure to understand. I did acknowledge that the Fed has been raising interest rates by selling bonds in order to raise the Federal Funds rate, which is definitely constrictionary monetary policy. However, the Fed has been buying far more bonds from the Treasury than they have been selling to the public. This buying indirectly increases the money supply once the Treasury spends that money on its varied projects. In addition, since these bonds are not being sold to the public, this action is exactly the same as printing money at the mint and putting it into circulation. We may not be experiencing the inflation now due to the fact that the global economy has been buying our excess bonds, but eventually other countries will start to wonder if 8-10 trillion dollars in debt is sustainable even to the biggest economy in the world. The inflation has been deferred, to be sure, but it is looming and unavoidable as long as the Fed remains complicit (is that word too big for you?) in allowing the Treasury to, in effect, print money by printing bonds and selling them to the Fed. I guess now it is time for you to make a baseless claim of victory all the while telling everyone else that they don't know squat about the economy. By the way, have you responded to the Krugman thread or are you going to continue to ignore the points made by a REAL economist?
