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


To: ChanceIs who wrote (241159)3/16/2010 5:34:13 PM
From: GSTRead Replies (2) | Respond to of 306849
 
<money only raises prices—i.e., dilutes its own purchasing power>

Good grief -- if you have a million dollars and a million bushels of wheat -- you have a one to one relationship. If you have two million bushels of wheat and two million dollars you have exactly the same relationship -- one to one. It is not the growth of money supply that in itself matters, it is the relationship between money and goods that is significant.

The supply of goods and services is NOT constant -- nor should money supply be constant. Inflation takes place when the rate of increase in money supply is faster than the expansion of the supply of goods and services.

This is really not rocket science. Mish is simply wrong.



To: ChanceIs who wrote (241159)3/16/2010 7:57:13 PM
From: Skeeter BugRespond to of 306849
 
Chancels, actually, he's merely sending trillions to his buddies.

all the actions they've taken enrich banks.

give them money (take wealth from citizen), subsidize their assets (get more suckers into homes before they collapse more), remove their toxic assets (and give them to the citizenry), etc...

they talk $700 billion, but back door up to $23.7 trillion. by design. most people don't even know $23.7 trillion was promised and multiple trillions have been handed over.

this is all about buber bankers and their cronies looting everyone else dry.

they will come after your retirement.

health care is all about taxes now, services likely never.

the money addicts want everything they can get now.