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To: RJA_ who wrote (91065)	10/2/2007 2:07:03 AM
From: Elroy Jetson	Respond to of 306849

Someone has convinced you that "money creation is the engine of economic growth". The truth is, the only product which is created by increasing the money supply is inflation. In a society where money holds its value, in fact purchases slightly more as the society becomes wealthier, what could possibly induce savers to invest or lend? Certainly you're smarter than this. Profit, that's what why over the long history of man that savers have invested or lent their savings. They do so to earn a profit. You believe that savers can only be made to invest or lend if the savers will lose their savings to the Monetarist Tax if they don't do so. All this has accomplished is to produce an economy with a negative savings rate. Imagine that! Creating money also subsidizes debt relative to equity investment, so you end up with an economy made fragile by an over-reliance on debt. -- Why does it subsidize debt? Because the newly created money is introduced through the banking system. -- So more savings get lent rather than invested. And the purpose of a fragile economy is what? That's right - it creates a reason to create even more new money to rescue the fragile and sick economy - making it even more fragile. .