On a Clear Day You Can See the U.S. Dollar

Some choice quotes forwarded by Paul Brodsky at QB Asset Management on this fine Fed day:

“…the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S, government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.”
-          Ben Bernanke, November 21, 2002

“Zimbabwe fell into a trap of a relentless casino economy. In that context, central banking had to become more of a national survival art and much less a doctrine of pushing and advancing dogmatic economic theories.”
-          Gideon Gono, Head of Zimbabwe Central bank, 2008

“Issue after issue of currency came; but no relief resulted save a momentary stimulus, which aggravated the disease. The most ingenious evasions of natural laws in finance which the most subtle theorists could contrive were tried – all in vain.”
-          Andrew Dickson White, writing in 1896 about the destruction of the French assignats of 1796.

“What is needed is credit. The credit that I propose to establish will be different in its nature from the kinds of credit now in general use.”
-          John Law, Comptroller General of France, 1720

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