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11/20/08
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October
23, 2006 Because of a prolonged and aggressive loose monetary policy, a situation can emerge when the pool of real funding starts shrinking. In short, there are now more activities that consume real wealth than activities that produce real wealth. Once the pool of funding begins to fall, anything can trigger the so-called economic collapse. Obviously when things are starting to fall apart, banks try to get their money back. Once banks get their money (credit that was created out of thin air) and don't renew loans, the stock of money must fall. Note however that the consequent price deflation and the fall in the economy are not caused by the liquidation of debt as such, nor by the fall of money, but by the fall in the pool of real funding because of previous loose monetary policies. (Read the rest here. Click the "back button" to return to The Price of Liberty.)
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Justice and Prudence of War: Toward A Libertarian Analysis The
Antifederalists Were Right Do
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Revolutionary War and the Destruction of the Continental The
Fraudulent Tax Legalize
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