Silicon Investor (SI) -- The First Internet Community

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 -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (53984)	2/16/2006 10:02:55 AM
From: Mike Johnston	Read Replies (1) \| Respond to of 110194

What would happen if the Government decided to increase money supply by 50% via a combination of huge tax cuts monetized by the Fed and simultaneous multitrillion dollar expansion of government spending, again monetized by the Fed ? Suddenly with 50% more money in circulation, would there be a corresponding increase in supply of goods and services ? The increase in demand would cause prices to increase by roughly 50%. So there you have it, supply and demand.