Economists John Greenwood and Steve H. Hanke ably sound the alarm in “The Money Boom Is Already Here” (op-ed, Feb. 22). Too many have looked away as the Federal Reserve prints dollars by another name: quantitative easing. While the authors rightly describe the profound implications of the massive surge in M2 from the money that has already been spent, they neglected to mention the implications for the pending $1.9 trillion in Covid spending that President Biden and many at Treasury and the Fed have requested. Follow their logic and understand the profoundly bad implications of an additional $2 trillion on top of the $4 trillion in prior Covid-rationalized spending.
The Fed’s creative accounting combined with profligate federal spending won’t end the pain for Americans. It will grow the wealth gap, inflate asset prices, accelerate the growing gap between Wall Street and Main Street and imperil the U.S. dollar as the global reserve currency.
Rep. Warren Davidson (R., Ohio)
This letter appeared in the Wall Street journal