tag:blogger.com,1999:blog-3758330678390419129.post3882393098026115144..comments2024-02-13T02:39:22.756-05:00Comments on EconomicPolicyJournal.com: Murray Rothbard Explains Why the Fed Can Inflate Even When Interest Rates are ClimbingRobert Wenzelhttp://www.blogger.com/profile/14296920597416905488noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-3758330678390419129.post-29743393788575595552013-01-16T11:34:32.391-05:002013-01-16T11:34:32.391-05:00Bob - I was totally wrong here...thanks for the re...Bob - I was totally wrong here...thanks for the response. However, I did find Rothbard's answer a bit unsatisfactory on second viewing, and I think it's partially due to the questioners' conflation of a couple very distinct things in his line of questioning. However, I do think Rothbard made a careless equation between money and credit in this clip, and what I was trying to point Paul Tenneynoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-91151194677615924222013-01-10T09:10:29.025-05:002013-01-10T09:10:29.025-05:00I'm really in agreement with Rothbard here. Th...I'm really in agreement with Rothbard here. The questioner is trying to say that interest on Treasury securities limits how much the Fed can print. This is just not true. Robert Wenzelhttps://www.blogger.com/profile/14296920597416905488noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-51301393858452720232013-01-10T08:31:45.338-05:002013-01-10T08:31:45.338-05:00Is it not obvious that the interest burden never g...Is it not obvious that the interest burden never gets too high for an entity that can create money(even if you call it credit; which is being redeemed for money almost instantaneously).<br /><br />I don't understand this argument about the interest burden being "too high" made by the other gentleman....is the gentleman conflating who is bearing the brunt of interest rates hikes...itNick Badalamentihttps://www.blogger.com/profile/14015961786370759940noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-51149391763803916102013-01-10T08:23:31.219-05:002013-01-10T08:23:31.219-05:00Bob - watch this video again. The questioner is o...Bob - watch this video again. The questioner is on to something, and if I may, might be closer to the "Wenzelian view" than the Rothbard view. You've staked out your own ground in the Austrian school, and I think the questioner might have been barking up the same tree. I think Rothbard did a little knee-jerk reaction here - if he watched this now he'd have responded Paul Tenneynoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-33013289341803874252013-01-10T08:04:53.990-05:002013-01-10T08:04:53.990-05:00I understand what the questioner was saying: Becau...I understand what the questioner was saying: Because money has to be a commodity, then printing money substitutes is really just creating credit - to be redeemed FOR money, later.<br /><br />Note that this view is consistent with the Austrian view that deflation doesn't cause economic crashes.<br /><br />When crashes happen, it's the CREDIT supply that's shrinking, not the money guestnoreply@blogger.com