Sunday, March 22, 2020

Death and the Money Supply

Charles Wilson emails:
Article Request Time!!!

One rather macabre - and hidden reason - for exploding the M$ is that, if I die from the Chinese Communist Party Virus, my Money Transactions are gone.  If it is a True Pandemic, many other lives are lost and THEIR Transactions are gone.

The Money Supply crashes.

"So...Better to Inflate now and we'll even it out on the other side..."


What is the ABCT explanation (and solution) for this upcoming Catastrophe?

RW response:

Any money already printed would go to the estate and passed on so I don't see how money supply would crash or, necessarily, the number of transactions decline because of a death.

But even if for some reason the number of transactions did decline, it has nothing to do with money supply.

You are probably thinking about the Irving Fisher equation PV=MT which shows (sloppily) that a decline in the number of transactions results in deflation. But so what? Falling prices just means it is cheaper for the rest of us to buy things. What is wrong with that?

Second, I don't believe that many will die from COVID-19.

Bottom line: There is never any good reason to inflate the money supply and certainly not now.

The country needs to get back to work (and play).

As far as ABCT, Austrian School Business Cycle Theory has nothing to do with the current economic crash.

ABCT is a theory about a specific economic phenomenon, the boom-bust business cycle that results in a distortion of the capital-consumption structure by central bank money printing. The business cycle crash occurs when central bank money supply printing is either dramatically slowed or stopped.

A money slowdown is not occurring now.

This is a crash caused by government edicts to stop work across the economic spectrum.

Even if there wasn't a central bank distorting the current capital-consumption structure, we would still have this crash.



  1. And if the dead were buried with their dollar bills in their coffins, then that reduction in the money supply (a permanent hoarding) would increase the purchasing power for everyone else's dollar bills.

  2. Hi -

    Why are we continuing with the needless medical martial law?

    We have enough data and research now to know this may actually cause the virus to spread faster from the information from China & the Princess Cruise ship and also the counter examples of S Korea & Japan who did not do lockdowns.

    Again, read the CDC & WHO data on this in the Ginn report.

    Asymptomatic transmission (people passing it on without knowing it) occurs in only 10% of the cases

    The data from China suggests 78-85% of the cases occur from someone within the home.

    WHO data says that there are ZERO cases of kid infecting parents from school but lots of cases where kids infect parents from the data from China.

    Why are schools closed still?

    The worst policy possible is "lockdown" because the virus spreads best in confined spaces when people are trapped inside for several hours.

    Which is exactly the course of action several states & cities have done in major metro areas. This is either blind stupidity, "cover my back" mentality on steroids, or a political & government power grab beyond all imagination.

    It's almost if they want people to get sick and/or die to wrack up a huge "panic" count. Yes, I know all state operators including Trump are out for more government & more personal political power but leftist Governors & Mayors seem to be willing to even kill to make sure that people know "Orange Man Bad"!