I'm trying to figure out if the author was being intentionally obtuse or actually doesn't understand any of this. "Instead of raising taxes, the Federal Reserve can print an extra billion. In terms of real resources, $1 billion is taken from other uses, made into missiles and exploded. The billion dollars is gone, and it doesn’t matter whether it was paid for with taxes or printing money." No, the missiles maybe gone, but that $1 billion is now in the hands of the defense contractors who made the missiles. Well, a small amount is in the hands of their labor force, another piece in the hands of their suppliers and lenders, and the huge portion is in their corporate accounts or distributed into the hands of their shareholders. In other words, most if that $1 billion gets transferred to a few wealthy individuals and a few huge banks. The Fed hasn't actually figured out how to reduce the size of the money supply in the new reality of near zero interest rates.