Posted To Mish Shedlock’s Blog 07/06/2025

Musk is an orthodox libertarian and so believes economic delusions and additionally does not understand the money system. The economic and monetary solution to our problems is the 50% Discount/Rebate policy at retail sale because the discount doubles everyone’s purchasing power by implementing beneficial price and asset deflation BY ADDING MONEY TO THE ECONOMY…THE HEADS OF THE ORTHODOX EXPLODE AND THE QUANTITY THEORY OF MONEY IS RESIGNED TO THE DUST BIN OF HISTORY. Meanwhile, with the FED simply creating the money (not treasuries) of the rebate aspect of the policy the commercial agent gets their full price so no moral hazard there and the interest factor, which isn’t actually the problem the libertarians and also the democrats love to demagogue BECAUSE THAT INTEREST IS ACTUALLY A PAYMENT TO THE PRIVATE SECTOR AND HENCE A PART OF GDP.

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