Skip to content

Counterfeiting or not?

August 28, 2012

There was discussion on CNBC and in the Wall Street Journal about certain individuals referring to the world’s central banks printing of money as “counterfeiting.” This seems like such a good description to me when you really think about it. If you or I printed money out in our garage, we would be arrested for counterfeiting. When our central banks do it, it is called “monetary policy” or “monetary intervention” or “monetary stimulus.”

If I were unemployed and having everything repossessed, including the roof over my head, and suddenly there is a knock at my door and there before me stood a federal agent (my guess is he would be from the U.S Treasury Department) and I am holding a freshly printed sheet of $100 bills with green ink on my fingers, I kind of doubt that he would accept my explanation that I was practicing my own form of monetary policy and monetary intervention, and it would sure be legitimate stimulus for me and my family. But isn’t that what it all comes down to — who, exactly, benefits from monetary stimulus?

Comments are closed.

%d bloggers like this: