[palmer]

And it does not matter whether it is the Fed issuing new credit, in any of the above. If I run up credit card debt, the causes and possible effects are exactly the same, just smaller in magnitude for an individual. If business entities increase their acceptance of payables and receivables from each other, the same will occur.

It does matter. The Fed created its 200B in credit from nothing, whereas your credit card credit came from a bank's capital. I never said my capital was guaranteed to go up or to do anything, all I said is my capital is worth less when credit is created from nothing. Further those of us who aren't in denial know that debts will eventually be monetized, or inflation of the money supply not just new credit.

my credit freedoms

You are free to borrow as much of my capital as you want (at 5%), just not from the Fed at 2%.

[JasonC]

No, my credit card slip in the merchants drawer has no capital behind it whatever, and it is money.

You capital isn't worth less when credit is created from nothing, you have no idea what the effect on its value is. Capital in an FRB in your mattress goes down, in the SP500 who knows, in gold probably goes up, etc. You picked the asset mix, you are responsible for the resulting real return.

All credit, incidentally, is created from nothing. Capital is something else again, credit is just promises about it, which can come true or be false for any reason under the sun.