I’m driving to Philladelphia with Gilfred Godfrey. We are attending the Philly Phanatic’s annual Memorial Day party. When we drive there, I’m constantly saying, “ok Gilfred, turn up the radio.”

The idea that there is some direct link between the money supply and inflation is absurd on its face. Do any businesses raise their prices because the Fed has put money into circulation? How many businesses even have a clue as to how much money is in circulation? In the real world, prices are set by supply and demand. If any business tried to raise their prices just because the Fed has put more money into circulation they would soon find themselves wiped out by the competition – at least as long as we are in this situation of having enormous excess supply.

This story should be old hat to those who have studied Keynes. In a period of high unemployment, like the present, governments can literally just print money. Not only will this put people back to work, this process can also lay the basis for stronger growth in the future by creating better infrastructure, more energy efficient buildings, supporting research and development of clean energy and improving the education of our children

Priest attached to party balloons vanishes in Brazil