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IPFS News Link • Welfare: Social

Should Libertarians Cash Their Bailout Checks?

•, RW

RW response:

I don't consider the check a handout, I consider it a major effort to depreciate the currency and you need the "stimulus" money just to stay even.

I say this because the Federal Reserve will have to monetize the borrowing the Treasury will do to fund the checks it is sending out.

By monetize, I mean the Fed will print money out of thin air to buy Treasury securities. It is this monetization which results in the depreciation of the currency.

Consider it this way: Suppose the Treasury was sending out checks to everyone for a million dollars rather than $1,2000. If you did not cash your check, the money you would be holding would seriously deteriorate and you wouldn't have the buying power to buy normal goods and service because everyone else would have the million dollars to bid up goods and services. So in this case, the million dollars wouldn't be a handout, where the government is taking money from someone else and giving it to you, but rather a destruction of the value of the currency that they force you to use.