You Know It’s Time for Sound Money When “Helicopter Money” Is All They Have Left
By Stefan Gleason – May 17, 2016
Ahead of the Federal Reserve’s meeting … an old metaphor — helicopter money — is gaining new traction as world leaders try to improve global economic growth, which the IMF recently described as “fragile.” – CNNMoney
People may wonder why sound money advocates have become so militant about the hazards of allowing governments to issue unbacked fiat currencies. However, when the Federal Reserve and other central bankers so frequently discuss dropping money from helicopters, you know monetary policy has run amok.
The case for money backed by gold and/or silver is founded on the premise that real wealth is created by productive activity in the real economy. When governments and central banks take on the role of printing money at will, expanding credit, slashing interest…