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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: pogohere who wrote (83712)	7/17/2007 3:14:38 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 110194

Your child-like belief that the problems caused by excessive debt creation can always be cured with the creation of additional debt is touching and I'm certain quite sincere. Monetarists claim that the mountain of debt can ultimately be tackled by devaluing the currency, thereby forcing the holders of capital to pay for the capital destruction created by borrowers. They call this wave of new money "liquidity" . . . and claim that this wave of new money is proof that there is an excess of capital, not the reality which is a shortage of capital resulting from malinvestment during the debt bubble. Robert Mugabe's Zimbabwe is the best current example of a successful Monetarist economy. .