Quote:
Originally posted by Buff
Those numbers don't mean dick, Colin. Any economic expansion we have right now is nothing more than another false boom provided to us courtesy of the Fed's monetary expansion. You can't create wealth by creating money out of thin air and pumping it into the economy.
In the short run, you'll get a false boom. Right after that, you'll get a nice bust. We haven't even bled all the bad money out of the economy from the 95-99 expansion we had.
To give you an idea of what I'm talking about, go to: this link, and look at the money stock since 1995.
Here's the graph:
That's a recipe for disaster.
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What you're saying is not born out by the numbers you showed me. In fact, just the opposite.
Consider the July 1990-March 1991 contraction. The annual change in MZM was ACCELERATING throughout the entire recession and continued to increase until 1994 as the economy was gaining steam.
Year MZM
1990 +3.7%
1991 +6%
1992 +10.5%
1993 +11.2%
For that matter, the MZM increased 15% during the 1981/1982 recession, a recession that lasted 16 months. In the 16 months after the recession the MZM exploded another 25% as the recovery was under way.