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

To: Tommaso who wrote (101219)	2/12/2009 1:57:24 PM
From: Elroy Jetson	9 Recommendations Respond to of 110194

You can easily stop inflation by halting credit growth. There is no debate regarding that. But the delusion you can solve the problems caused by excessive debt relative to income with additional debt growth is simply insanity. Friedman & Schwartz observed that the money/debt supply, multiplied by the monetary velocity, declined during the Great Depression. So far so good. They then made an enormous failure of logic by concluding that the converse of this observation must be true - namely that you can prevent or reverse depressions by creating more ever more credit - a preposterously wrong idea. If I observe my car is red, Milton Friedman assumed the converse was true - that all red cars are mine. Friedman was a shockingly dishonest political toady. .