It was Franklin who pointed out in the clearest terms, when Adam Smith was a little boy, that paper money could be printed in any quantity as long as it was backed by value. What we call today, infrastructure, is what Franklin said supported (sterilized) the value of paper money as certainly as Gold or Silver.
What this means is that the money supply can increase related to the value on which the printed money is spent. Today we know, or should know, that money can be printed for any purpose whatever that proves to increase the productive potential of any human being.
The drags on our economy are primarily from giving huge, huge amounts of money to banks to bail them out. A worthless bond doesn't sterilize anything. To call this QE sterilized money because you might, at some point, get it back, is the stupidest idea I've every heard in my Life.
Richard Werner invented the term QE as a recommendation to the Bank of Japan. He did not recommend giving the big Japanese banks any of that money. It was to go into the "REAL ECONOMY". That is a term you wouldn't understand if I hit you on the head with it. But, down here on Main Street, we know what it means: PRODUCTION.
Biting the hand that feeds IT
