I have – framed above my desk – a $100,000,000 note – serial number AA23100220 and signed by Dr G Gono – the Governor of the Reserve Bank of Zimbabwe.
This – it seems – offers the solution to all our deflationary woes.
It seems that no matter how many dollars the Fed prints it can’t induce inflationary fears. I suggested that the Fed rent a couple of hundred helicopters and (literally) push $2 billion out the window. That I thought was irresponsible enough to raise inflationary expectations.
Alas real objections can be made – not the least that people might climb on rooftops looking for the booty – and slip and die. I can’t morally justify the deaths.
But the Zimbabwe note has given me another solution – one that doesn’t require any helicopters or even the printing of any money. It is more than sufficiently irresponsible – yet nobody will die.
Ben Bernanke should resign forthwith and Dr G Gono should be appointed as Chairman of the Fed Reserve.
Nothing need change. Monetary policy can remain in the effective hands of the other governors – but the appointment of Dr Gono will rapidly raise inflationary expectations – and the new inflationary expectations should induce the spending of the massive hoard of saved dollars – providing all the economic stimulus needed.
Dr Gono may be the wrong man for Zimbabwe – and the right hand man of a dictator. But he is what America needs right now.
Do you think we can get him confirmed?