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To: Ilaine who wrote (6143)	7/20/2001 7:24:19 PM
From: marek_wojna	Respond to of 74559

<<And while we're on the subject, please explain to me how "surplus cash" was created by a process that "essentially involved no money creation"? >> "Surplus cash" is still to be produced to be paid back, or written off by the process of inflation.

To: Ilaine who wrote (6143)	7/20/2001 9:34:20 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 74559

CB - ...Now, please esplain to me how credit can be created, without showing up in a bank balance somewhere. You said that the credit wasn't created by a bank so it doesn't show up in the money supply. How does that work? Whoever borrowed the money, spent it, or if they didn't spend it, they saved it. Either way, it's going to show up in a bank balance, somewhere sometime. ... Look at your credit card statement. There are three numbers - Total Credit Limit, New Balance, and Available Credit. The Available Credit doesn't show up in a bank balance, and whether or not it is officially part of money supply, it has the same sort of inflationary affect as it partially replaces the need to hold cash balances. Regards, Don