tag:blogger.com,1999:blog-7475395270631949054.post8788627047244134119..comments2024-02-15T21:31:06.486-08:00Comments on Capitalism and Freedom: Europe’s New Capital Rules Are DeflationaryChristopher T. Mahoneyhttp://www.blogger.com/profile/07096275297545797428noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7475395270631949054.post-40025182816728705792013-08-16T05:34:55.414-07:002013-08-16T05:34:55.414-07:00"Europe is planning to shrink its money suppl..."Europe is planning to shrink its money supply. How Hooverish!" Agreed. But the alternatives are intolerable. a. no change leave it as is - ask a Spaniard if that sucks. and b. increase M2 by making more loans - well is not that the conundrum as in 1932? Consumers are already heavily indebted so more debt (M2)is not the answer. HH's need more income/money not more debt/money. Businesses or rich HH's could inject more money from savings/REarnings by making real investments but why would they - their customers are broke or deleveraging.<br />Vinneyhttps://www.blogger.com/profile/05863909558453793791noreply@blogger.comtag:blogger.com,1999:blog-7475395270631949054.post-14210394987781966502013-08-15T14:12:51.220-07:002013-08-15T14:12:51.220-07:00Yep. The ECB's stance as the most hawkish and...Yep. The ECB's stance as the most hawkish and conservative of major central banks has been a huge part of the Eurozone's continuing crisis. Crass incompetence on the most massive scale to rival the Federal Reserve in the 1930's.Stephen Wigmorehttps://www.blogger.com/profile/15604582974059809054noreply@blogger.com