Gary, I'm not quite sure how the Fed can be more "countercyclical in downturns". It is Fed intervention, and the fractional reserve banking system it maintains, that cause the financial pain.

I had to read this article as your view is in stark contrast to mine. With valuations at record highs, interest rates moving up, bank lending growth in rapid decline, and the shorter term growth rate of the money supply just having moved into negative territory, my conclusion is the exact opposite. It will be an interesting year.

See your point, but not sure how that could be done fairly. Many things have gone wrong, not just on the money side. One thing is for sure though: people want and need more purchasing power. That can only be achieved with more production as HM would only bring forth additional price inflation.

Yes, they were all bailed out at the expense of others, totally agree. It was a great injustice on a grand scale.

We don't however need yet more AD unbacked by production as that is what has been happening for decades, especially the most recent one. What is needed is increased production. Further increases in the MS will not achieve that (in fact, it will achieve the opposite!). The only sustainable solution IMO to this monetary problem is to implement a largely inelastic currency. Sadly, this option is never discussed by policymakers to my knowledge.

But why does the money supply need to increase at all?

What would helicopter money fix?