For those who follow the pronouncements of central bankers and the sellside penguin brigade, one thing you might have noticed recently is an increase in the number of very “serious” people who are suddenly calling for so-called “helicopter money.”
Take Citi for instance, where both the firm’s chief economist Willem Buiter and global head of G10 currency strategy Steven Englander both called for helicopter money in September as apparently, the only way to save the world now is to simply have the government print debt certificates only for the central bank to immediately monetize them.
Note the enormity of that suggestion: that is just one degree of separation away from suggesting that central banks literally drop cash from the sky.
Isn’t it strange? We are living in the 21st century, a period of time in which people buy land on the moon, humanity has dozens of satellites providing GPS services, and real time traffic information.
The internet brings people and information as close as one click, science and technology are making historic break throughs … but economists cannot agree on the real cause of the latest financial crash (2008).
Generally speaking, there are two schools of thoughts when it comes to diagnosing the 2008 crash. One is based on free market principles and is detailed in Austrian economics. The other is based on [communism’s] central planning and is centered around Keynes (hence, Keynesian economics).
- Keynesian Krugman: Higher Taxes and Death Panels Will Be Required
- Shenanigans On U.S. Exchanges Won’t Stop Precious Metals From Rising: The End Of The Keynesian Rothschild Paper Derivatives.
- New Global Challenge: Can We de-Rothschild The World? Pravda.Ru