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To: Elroy Jetson who wrote (259006)	7/7/2010 2:54:40 PM
From: patron_anejo_por_favor	Read Replies (2) \| Respond to of 306849

>> realize that Monetarists, Keynesians, and other schools of economics believe additional debt creation is the way to avoid an economic depression - but I have never understood how this is possible except in the short-run.<< It didn't work in the 30's nor in Japan. It won't work now. What cured deflation ultimately was blowing up factories in the cities of Germany, France, Great Britain and to some extent Russia. I'm not sure we're going there again, but who knows?

To: Elroy Jetson who wrote (259006)	7/7/2010 5:32:59 PM
From: THE ANT	Read Replies (1) \| Respond to of 306849

If they create inflation it will deflate assets like happened in Brazil.Also the finacial type will come out on top of the common man.All because we are cowards?

To: Elroy Jetson who wrote (259006)	7/7/2010 6:45:55 PM
From: Perspective	Read Replies (1) \| Respond to of 306849

< I have never been able to understand why people like Milton Friedman, Paul Krugman, and hundreds of others have never been able to comprehend this.> I think they must assume that inflation can be selected at will. They have several flawed assumptions, like assuming quasi-static behavior - that higher inflation doesn't impact the pool of capital, and that demand is unlimited so that bringing forward demand to the present has no impact on future demand. BC

To: Elroy Jetson who wrote (259006)	7/28/2010 3:56:12 AM
From: Skeeter Bug	Respond to of 306849

>>I honestly can't understand how Krugman believes there will be a positive result from treating the problems created by excessive debt, with additional debt.<< only a banker would think like that, since banks sell debt as a product. in short, krugman is a mouth piece for the banking establishment. obama said credit is the lifeblood of the economy... no, productive capacity is. obama doesn't work for manufacturers, he works for bankers. obama says credit is the key to capital formation. no, savings are. but he doesn't work for savers, he works for bankers. i agree with you, i don't see them being able to turn credit north again - a requirement for inflation (see 2nd chart in article). market-ticker.denninger.net