Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: semantic
No dollar expansion, no GDP increase.

This premise is patently false.

239 posted on 07/29/2011 11:41:17 AM PDT by Hoodat (Yet in all these things we are more than conquerors through Him who loved us. - (Rom 8:37))
[ Post Reply | Private Reply | To 147 | View Replies ]


To: Hoodat
No dollar expansion, no GDP increase. This premise is patently false.

Actually, it's factually true. In a non-productive economy such as ours, GDP is purely a function of debt - that is, good 'ole inflation/deflation.

Total debt outstanding is a function of the monetary base ie reserve ratios, leverage, etc. The monetary base can be expanded in real terms by creating new dollars (actually credits - refer to the Fed's $14T liquidity flood), or it can be expanded in a virtual sense by altering (increasing) leverage.

But, thanx for playing. You're doing a fine job of demonstrating to others how to be a banker's b!tch. OTOH, perhaps you should avoid discussions regarding economics & finance on a public forum.

240 posted on 07/29/2011 12:36:25 PM PDT by semantic
[ Post Reply | Private Reply | To 239 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson