Jan 3, 2010

Mike Shedlock on credit vs. capital

We have a total misunderstanding of what credit is vs. capital. Capital can't come from the thin air creation by the Federal Reserve System; capital has to come from savings. We have to work hard, produce, live within our means and what is left over is called capital. This whole idea that we can re-capitalize markets by merely turning on the printing presses and increasing credit is a total fallacy; so the sooner we wake up to realize that a new system has to be devised, the better.

~ Mike Shedlock, "Case Against the Fed and Fractional Reserve Lending," LewRockwell.com, May 7, 2009

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