Video: Money Printing Good, So More Money Printing Better?

Today, we have another economic round-up with a bit of eye-opening paradigm shifts in the video post below.

First off, the Fed is currently holding off on any further stimulus. “A couple of members indicated that the initiation of additional stimulus could become necessary if the economy lost momentum or if inflation seemed likely to remain below its mandate consistent rate of 2% over the medium run,” according to the Fed’s minutes. Of course we don’t encourage more stimulus, but the Fed’s counterproductive logic believes that unemployment is actually improving as millions of people are falling off of the statistics as they are breaching the two year mark.

 Apartment vacancy rate falls to decade low

This actually is an indication of a money trend where you could be making some money on. What happens when millions of people foreclose on their homes? Do all of them go and live under a bridge? No, majority go and rent which is driving the prices for rent up and is being reflected in the vacancy rates in apartments. The national vacancy rate fell 0.30 percentage points in the first quarter to 4.9 percent, the lowest level since the fourth quarter of 2001, according to preliminary results Reis released Wednesday. Meanwhile, asking rents jumped by 0.5 percent from the prior quarter to $1,070 per month. Stripping away months of free rent and other perks designed to lure or retain tenants, effective rent rose to $1,018 per month, up 0.9 percent, the largest increase since the first quarter of 2008.

Canada Stops Making The Penny

The government says the measure will save around $11 million a year because each new penny costs 1.6 Canadian cents to produce. It really is something that the U.S. government should consider since their literally printing money that costs more to make than it does to spend. Of course when it’s created and loaned into existence, one has to wonder why they ever would stop printing the penny. The conspiracies continue…

In the past we have jokingly discussed the creation of a Death Star as the way the world can save itself by printing an almost infinite amount of money to support growth. As almost everyone, especially the MMT crowd it seems, can plainly see, if printing some money is good (well it must be, markets are up) then printing more money must be better, right? Well, no (as we discussed in detail here). There are unintended consequences and as we pointed out recently, we are already seeing less and less effervescence in the real economy from QE’s impact and the spectre of the inflationary pressures that implicitly limit the ‘benefit’ of this action is nowhere more painful than in energy prices (and in fact the price of anything in relative limited supply as opposed to cash which is printed daily). Professor Antony Davies, of Duquesne, takes this subtle concept to task in this exceptionally straightforward 206-second video on money as an IOU and its solution to the caveman’s ills providing the background for why money’s inherent value is relinquished once it becomes printed en masse. Printing more money doesn’t make more goods and services appear, simply spreads the value of the existing goods and services among a larger number of dollars – this is inflation. Our wealth comes not from money but from the goods and services that money buys. Q.E.D.

This video below discusses why money was created and answers the important question of “Why not print more money?” Click the image link below or visit CrushTheStreet.com to watch!!!