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Comment by rspeer | Hacker News Reader

Yes. Can you answer it? Assume I'm neither a libertarian nor an anarchist.

During the past decade, the Federal Reserve has created 4 trillion dollars out of thin air in an attempt to prop up the economy. The Fed seems hesitant to unwind that as it carries the risk of harming the economy. Fiat money can always be created out of thin air, and it seems to be proving difficult for those in power to resist that temptation.

https://www.thestreet.com/story/14181100/1/the-fed-normalize...

But why is that bad?

>During the past decade, the Federal Reserve has created 4 trillion dollars out of thin air in an attempt to prop up the economy.

During the 1840's to 1860's we created billions of dollars out of thin air by mining gold from the ground in California. Fiat currency saves us the digging.

Money is not a static "thing" that definitely exists. Markets need liquidity. QE has provided that liquidity as the vast majority of capital in our society has become locked up by the top 1%. If anything, they could increase the flow of QE because of how low inflation is right now.

Damn, I should've stick to actual goods barter trading instead of a piece of paper.

If the reason I'm supposed to be concerned about fiat money is Jim Cramer's website, I feel even better about it now.

(Also, they're arguing against QE, not the entire concept of fiat money.)

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