Homestead mailing list

["Don Bowen" <don.bowen AT earthlink.net>]

> Yes, they did and Bernanke has been laying the fertilizer to it.  He has 
> been
> declaring an extra $100B to exist every two or three weeks for some time 
> now.
Extra money suddenly dumped means only one, more money chasing the same 
goods or inflation.  The money also is used to fuel the asset price 
inflations commonly known as bubbles.  Greespan dumping more money on the 
misplaced Y2K worries helped fuel the dot com bubble.  Money to get out of 
that helped fuel the housing bubble.  Money to get out of that helped fuel 
the ????? bubble.  Eventually it all comes tumbling down.  The system will 
reset and start all over again, some will make  out more will get hurt.

> People don't know squat about economics.  How many times have we heard, 'If
> we weren't spending a billion a month in Iraq, we could .... schools, 
> medicine,
> feed the poor, etc."  No you can't.  If you apply more money to something, 
> it
> doesn't create more of that thing, it only makes it more expensive.
Depends.  Money poured down the Iraq rat hole is money just poured down a 
rat hole.  Money spent on investments for the future such as better health 
care, schools, roads and bridges, revitalizing railroads, research is money 
that is  invested in the future.  An easy to see example is the money that 
flowed from the new world into Spain and England.  Spain spent the money on 
lavish lifestyles, huge manors, etc.  England spent the money on canals, 
steam engines, innovation.


Don Bowen      KI6DIU
http://www.braingarage.com/Dons/Travels/journal/Journal.html