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

To: Tommaso who wrote (98790)	1/2/2008 6:13:36 PM
From: GST	Read Replies (3) \| Respond to of 306849

I noticed your posts on liquidity -- and I saw responses that credit is not money. The US economy runs on credit -- cheap credit and lots of it from foreign sources, and yet you see people on other threads saying that credit does not count because it is "temporary" so it can never be considered "inflationary". I don't know how you can respond with a straight face, but you seem to manage. Have you also noticed that none of these "credit is not inflationary" types ever grasps what it means to finance deficits of all kinds from foreign sources? And that none of them seem to grasp what drives the relative price of the dollar? And none of them seem to grasp what it means to buy things on international markets with a currency that is steadily falling in relative price? So if the dollar falls by 90% and if the price of everything not domestically sourced soars -- just remember, this is not inflation, it is just skyrocketing prices and completely unrelated to inflation, because all that matters is their narrow concept of money supply -- so funny.