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Bernanke Quote from 2002

Just doing some light web browsing today and came across this gem of a quote from bernanke.

“Under a fiat money system, a central bank has a technology, called a printing press that allows it to produce as many US dollars as it wishes at essentially no cost. By increasing the number of US dollars in circulation, or even by credibly threatening to do so, the US government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services.

We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation"

This is our savior, God help us all

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This is a good plan? Not.

Thanks for posting.

The optimal inflation rate

The optimal inflation rate is around 3%. If the inflation rate is at 0 (its at .24 right now) then that means money is not circulating and business is not being done.

This plan, outlined by Bernanke, would be a response to deflationary periods, such as what we are experiencing right now, and would be aimed at raising inflation to increase circulation and business.