May 12, 2008

Lew Rockwell on the limits of credit expansion

Will more monetary injections work to puff up the economy? They might, but only temporarily. There comes a point at which no matter how much the Fed floods the markets with credit, it can still find no takers. It's happened before: in 1930 and following, for example. The Fed tried desperately to inflate but to no avail. It could happen again.

~ Lew Rockwell, "The Fallacy of Money Mania,", November 30, 2007

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