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.


4 thoughts on “A Note on Inflation

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s