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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (29315)	4/8/2005 10:21:07 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

Currency crank systems are based on the false belief that a nation's wealth increases when money and/or credit is increased. It matters little whether this increase is a result of: 1.) dropping money out of airplanes; 2.) mailing everyone a check from the government "because its your money"; 3.) reducing tax rates and paying for the reduction with new government debt; 4.) abandoning prudent lending requirements so everyone qualifies; 5.) dropping interest rates to zero; 6.) offering loans which feature no-payments for 100 years. All of these currency crank ideas, and millions not listed above, operate in exactly the same way: A.) they greatly speed up the turn-over of existing money (monetary velocity); B.) they transfer wealth from those who have it to those it is given to or lent to.