Quote by gulsonroad30664
niceguy, i like your simplification of what you say gordon brown/allister darling are proposing to do (quantative easing)increasing the money supply. you have things upside down. that is their prosed response to the reduction in the money supply caused by banks refusing to lend. gordon brown and no elected representative tells the banks what to do. its the other way round and regardless of what supposed political cessation of continuing credit (increase in the money supply)had to stop because the total of capital required to service the interest of derivitives alone had become greater than the gross product of human activity on the planet and the ponzi scheme was up ! under the normal circumstance of regulated fractional reserve lending, the money supply must continue to increase, otherwise, where would the interest come from ? but since deregulation, where fractional reserves were in the regions of 35 - 50 to 1, not just in the cases of commercial banks and hedge funds but chartered banks as well, the size fictiteous value sloshing around in derivitives, siv's, cdo's etc puts 1929 and the 30's in the shade. the correction will be far more greater. any time very soon, a big event. dave