Richard Fisher: “The cost of money is zero”.
Richard Fisher
The concept of creating money out of thin air and the idea that in our debt-based monetary system, money is loaned into existence are discussed at length throughout this blog. It is the most fundamental reason people are exchanging their paper money (whose supply is unlimited) into hard monetary assets like gold and silver (whose supply is finite and very limited).
However, this concept is still very alien to some. It is so simple and “ridiculous” that many still cannot accept this to be true - that the money in our pocket is the result of our labour while at its source, it is free for the bankers who created it.
So, today’s post is short. Very short. Let’s hear from the horse’s mouth.
(Reuters: March 25, 2011) - Dallas Federal Reserve Bank President Richard Fisher said on Friday there were signs that liquidity was not just abundant, but excessive in the United States.
“Today we have abundant liquidity and the cost of money is zero,” he said, adding that no amount of policy accommodation or new accommodation would solve the U.S. economy’s problems.
“Today we have abundant liquidity and the cost of money is zero.”
“We did our job as a central bank, we may have done too much,” he told an event on ‘Which way for the U.S. economy’, organized by the Bruegel institute in Brussels. “We will no longer press on the monetary pedal.”
Fisher is regarded by economists as one of the most hawkish policymakers at the U.S. central bank.
Source [Reuters]
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