And so, you did not address how a substance created from nothingness should be expected to conform to invented “laws” of nature. The value is in the imagination of counterparties.
Not quite sure why a Series 7 is relevant to QE and Monetizing Debt having the same action taking place, but with different words used to describe it. QE is the buying of government bonds (and MBS but that is not relevant) with the purpose of stimulating growth. Monetizing debt is buying government bonds with the purpose of . . . it doesn’t matter. Both are the same actions. Words don’t change anything.
Well, they change the imaginations of counterparties — who might not be happy with the latter label vs the former.
An examination of the Fed Funds rate in 1978 and 79, when Volker took office, will show increases, sharp, to 10%, and inflation didn’t care.
As to the disappearing money theory of 2009 offsetting QE and thus preventing inflation, you’ll find M2’s growth slope shows no evidence of significant change at all throughout the decade. Steady growth, no disappearing money, no inflation.
Congrats on Series 7 in the 1980s. My MBA from the Univ of Pennsylvania was before then in 1979, so knowledge of the imaginary substance may have advanced in those next few yrs and I’m out of date.
“substance created from nothing”
The usual gold bug fantasy that even von Mises didn’t share. Which is why his Theory of Money and Credit regards creating unbacked credit money as fundamental to banking.
QE and TARP kept major banks from collapsing like Bear Stearns. Commercial bank collapse would have cratered the money supply. QE was matched by an asset deflation in bank assets which is why it didn’t result in inflation.