Some people are just economic ignoramuses (Update) More Insanity

Okay earlier I posted a comment left by a guy from a website called Digital Journal, his comment was the worst keynesianism imagineable. Now he back once again and if possible it's worse.

New Comment
Each and every one of them was caused by the boom bust cycle that will inevitably occur when the government has no fiscal or monetary tools to prevent them. It was because we had those tools, and used them properly, that there were no major recessions in the US economy from the end of WWII until Reagan’s Savings and Loan disaster. All the rest of the recessions since then have been caused by deregulation and poor fiscal policy.

Inflation is an important tool in preventing these boom bust cycles and in reducing the risks of a liquidity trap. It is also important for stimulating job growth.

Heres the link to the page so you can see all of the comments, many of them are quite interesting.

http://digitaljournal.com/article/281544

Earlier Comment
"This is why we need to teach civics in school. You do realize, don't you, that the government can't simply "print money?"

In the first place currency is a very small part of the money supply--around 5% most of the time. Secondly the government does not have all that much control over the money supply, which is largely in the hands of banks, the Fed being the leading one in this regard.

That was done on purpose way back in 1913. It was to prevent the government from simply "printing money" in order to meet its debts. That is why we don't have hyper inflation like those countries that lack a central bank.

As for funding the Olympics, that will be done in large part by private subscriptions and by companies looking to make a buck. But when it comes down to it just what, exactly, is wrong with the government borrowing money? Since they only pay around 3% on the money, and get back vastly more than they invest, due to the multiplier effect, it is a rather sweet deal.

The main reason that the government should not borrow in economically healthy times is that it "crowds out" other borrowers and dries up the money for investment. Since the Fed’s rate is effectively zero at the moment and they still cannot get investors to borrow this is not a problem.

There is a reason that countries all over the world fall all over themselves trying to get the right to host the Olympics---it is good for their economies."