The Epic American Credit and Bond Bubble Laboratory Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: jimmg who wrote (75866)	12/17/2006 1:29:21 PM
From: kris b	Read Replies (2) of 110194

Weimar Germany used printing presses (literally) and money velocity skyrocketed. It was easier to create hyper inflation back then because cash (credit was limited to very few) was also needed for transactional purposes, therefore it was easy to put liquidity/buying power into to the population's hands. After all everybody was paid in cash. Today buying power is created through credit. The next step is to force both borrowers to borrow (and spend it) and lenders to lend. In a nutshell you need two steps today rather then one in Weimar Republic. Nobody here showed me yet logically the method of implementation of the two step process. What is the transmission mechanism from the credit creation (which asset class can be still monetized) to the cash register? Anyone?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next