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To: slowhandluke

Aye. Printing money has *something* to do with it, but printing money doesn’t have *everything* to do with it.

The equation is: Money Supply = cash + credit.

Beck and Schiff don’t know the 2nd half of that equation. They only know the “cash” part. This causes them to think that printing money to fund FDR’s massive Social Security, war spending, and Works Progress Adminstration (WPA) somehow caused “inflation” or Weimar-like “hyper-inflation” back when the U.S. experienced record **DEflation** during the Great Depression.

Which is to say, Beck and Schiff are ignorant of credit-based economies.

If they knew that 20% of all U.S. banks failed in the Depression, and that the destruction of available credit was greater than the amount of cash being printed for FDR’s massive socialism, then they would appear more educated and would be able to make better analysis.

Don’t be like them.


35 posted on 02/06/2009 1:05:38 PM PST by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: Southack
"Some say the world will end in fire,

Others say in ice.

From what I know of desire, I hold with those who argue fire.

But if the world were to perish twice, from what I know of hate, ice would do, it would suffice." Robert Frost
40 posted on 02/06/2009 1:25:06 PM PST by kenavi (Cherchez de midi a deux heures. Drill now.)
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