>> Also, the right hates central banks because they're state regulators
>> of money. They much prefer gold, which is stateless and automatic -
>> and painfully austere.
Bad theory supports bad politics. The right doesn't know that it is wrong about fiat money.
The quantity theory of money is misleading, because it holds that the more money is available, the less “value” each unit has.
When money is created by a bank loan, that could be deflationary or inflationary depending on the type of loan. A loan to increase supply will have the opposite effect from a loan to increase demand.
Milton Friedman's book "Studies in the quantity theory of money" has a graph showing that during the German hyper-inflation the real value of the currency fell to 5% of its former value. Being a believer in the quantity theory, Milton goes on to puzzle over that inconsistent data.
Likewise, the confederate currency was increased at a rate lower than the inflation rate causing the purchasing power of the money to fall. Is that how the quantity theory works?
Money is never thrown from airplanes, or anything like it. It would be a good idea to explode crackpot theories in a teach-in, but there are so many.
Barry Brooks