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

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To: GST who wrote (109223)10/18/2010 2:16:37 PM
From: Little Joe  Read Replies (2) of 110194
 
I don't see how we get to inflation as long as our money is created by debt. Since the creation of money in our system requires offsetting debt which must be paid back by someone, how do we get inflation. It is like someone living on a credit card the larger the debt gets the more it takes to service the debt. As the debt is retired either by payment or default, the supply of money falls. Hard to see how you get inflation. Unless you go to non debt money and I think that could happen, but I don't think we will see inflation until we do.

lj
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