This is a trailer for a film that will be coming out in the US in a couple of months that deals with the mega-mess being created by the Federal Reserve. It is titled, Money for Nothing which seems to be a horror film in the genre of crony capitalism meets the Fed.

The reason lower interest rates are not a cure for an economy in recession, of course, continues to elude the economists’ fraternity because they cannot help believing that the problem is not enough demand so that their only cure is more spending. But watch the trailer. Charles Plosser’s perfect comment – “printing money doesn’t produce goods and services; it doesn’t hire people” – exactly captures what needs to be understood but which almost no one with a standard education in economic theory ever seems to comprehend. Yet what I find pleasing is that even though virtually no one is taught these things, the logic eventually dawns on some people that production must precede the purchase. In this case, it was the Chairman of the Federal Reserve of Philadelphia. Such ideas must rule him out as the next Bernanke. Still, there must come a time when the Fed will stop printing money and what will happen then is what I suspect this film is about.

[My thanks to JA for sending me the link to the trailer.]