A Note on Inflation

A Note on Inflation

The Federal Reserve holds about $300,000,000,000,000 in assets, most of it in debt instruments.  Let’s say the voting population of the US is 300,000,000 (It isn’t, it is much smaller).  So, that means, if the Federal Reserve sells off its assets when it starts making cash payments to US Voters, it could offset $10,000/citizen of its newly created money in the first year. Indeed, The Federal Reserve could create a situation where it pulls money out of circulation faster than it makes cash payments to citizens.  So, the Federal Reserve has the tools to make a transition to a democratized money supply seamless in terms of inflation/deflation measures.

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