At 6 minutes into the interview, he says that QE2 will impact interest rates but does not change the money supply (although he made a reference to currency in circulation…hmmm). It sounds like a Bill Clinton moment (“I did not have sex with that woman.” which I remember him saying that straight into the television camera.) I understand that the Treasury is the organization that actually applies ink to paper and calls it currency. But to pretend that money creating exercises like QE2, which is a specialized form of Open Market Operations, have no effect on the money supply stretches the truth a bit too far for me. Have a watch.

Cleaning up the tax code is a good idea. But, that feels like a bit of misdirection since it does not fall anywhere near the Federal Reserve’s mandate.


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