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To: carranza2 who wrote (383735)4/7/2009 2:44:22 PM
From: yard_man  Read Replies (1) | Respond to of 436258
 
>> too much money chasing too few goods <<

That assumes there is a "right amount" of money and a "right amount" of goods or that you KNOW the right amount ...

The thing is: easy money means overproduction of a lot of assets that aren't necessarily productive or needed --> at the expense of invesetment in the (capital goods) means to produce other goods

Can only mean one thing -- prices will go up to ration the goods that will be "under-produced" in the coming months and years due to the distortions produced by the credit boom ...

Houses aren't going to cost a lot more any time soon --

But get a clue -- you'll continue to absorb price rises at the grocery -- no matter who does the lying that produces the statistics that say otherwise ...

Likewise you will continue to absorb price rises in other areas where there has been underinvestment --

Heck, if you're correct -- that printing money doesn't send the value of goods down (in that currency) -- we can just make everybody better off by printing money -- the Fed is doing the right thing -- more money w/no price rises -- presto: everyone is better off -- nonsense.

Where do I get in line @ the IMF to buy gold to help the poor people?? sheesh ...



To: carranza2 who wrote (383735)4/7/2009 5:46:06 PM
From: NucTrader  Respond to of 436258
 
Precisely. When everyone is saving their $$, no one's buying, and the banks aren't lending, you can create virtual money till you get a nosebleed. It'll just lie there.