Monday, June 27, 2016
The Federal Reserve should consider printing money with disappearing ink.Because negative interest rates in Europe and Japan has't worked Yellen et al in the money kitchen should consider artificially withering currency. Not every bill should have a short shelf life say 1 year. Maybe only 2%. That could be one way of achieving 2% inflation. The clear message would be spend the cash or risk losing it.A side benefit would be a squeeze on drug dealers because they are cash only transaction. Counterfeiters could profit because their money would be more valuable by comparison. Their money would still be the reliable old fashioned method of production.The alternative to currency machinations world wide would be paying people what they are worth. That would shrink the deficits dramatically.And obviate the need for growth.