Lord Adair Turner, who is FSA Chairman (in London) is on this morning pumping the premise of printing money to finance deficits.
The problem is that nobody is talking about what it really means, including Turner.
There is no free lunch. If you increase the denominator of “money” that is present in the system the value of each unit inevitably declines by the exact same percentage as that which you emitted compared to GDP — which is axiomatically the amount of economic activity in the economy.
This is exactly identical economically to a tax increase which is a decision that, in any proper government operating with the consent of the people, must reside in the legislature.
For a so-called “independent central bank” to unilaterally impose such a tax is exactly identical to counterfeiting and is widely-recognized, when committed by anyone else, as a high crime bordering on treason.
THAT is the discussion we should be having. It is the point that none of these people will debate in public and speak of openly, nor will the so-called “journalists” on CNBS and elsewhere corner these screamers on.
The reason should be obvious: Once these “policies” are recognized for what they are these central bankers would be an endangered species by nightfall.
Disclosure: Long boiled rope futures.