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		<title>The Difference Between Money and Wealth and Why You Can Easily Print One But Must Actually Create The Other</title>
		<description>Discuss The Difference Between Money and Wealth and Why You Can Easily Print One But Must Actually Create The Other</description>
		<link>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other</link>
		<lastBuildDate>Sat, 25 May 2013 15:42:52 +0000</lastBuildDate>
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			<title>Bruce23 says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other#comment-10427</link>
			<description><![CDATA[Ryan, why would rightward shift of the demand curve of bread not lead to increase in its supply by the bread-manufacturing company whose sales are stagnating due to recession? Unless, its physically impossible to produce more bread due to shortage of flour/labor, there's no reason why in a competitive economy, manufacturers wouldn't take advantage of increased demand and increase their supply? Right now, neither US/Europe, nor any other part of the world is suffering from supply-constrains or shortage of labor. On the contrary, due to recession, prices of commodities are falling and due to increasing unemployment, labor is becoming cheaper.]]></description>
			<dc:creator>Bruce23</dc:creator>
			<pubDate>Mon, 09 Jul 2012 16:03:06 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other#comment-10427</guid>
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			<title>Ryan Shaw says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other#comment-10426</link>
			<description><![CDATA[Simplified greatly, handing the poor printed money would cause a rightward shift of the demand curve (an increase in demand), in bread for example, while the quantity supplied wouldn't change, this would lead to higher prices in the market. Carry on printing and handing out money and this would happen exponentially, leaving the citizens worse off.]]></description>
			<dc:creator>Ryan Shaw</dc:creator>
			<pubDate>Mon, 09 Jul 2012 09:10:28 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other#comment-10426</guid>
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			<title>Bruce23 says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other#comment-10424</link>
			<description><![CDATA[While you have mentioned Weimer's Germany, you could also have made a cursory mention of Zimbabwe's hyperinflation too. ;) Why doesn't anyone remember that Hitler rebuilt Germany's ruined economy by creating and issuing his own currency called "labor certificates" which were used for repair of public buildings and private residences, and construction of new buildings, roads, bridges, canals, and port facilities.. As far as Weimer's hyperinflation was concerned, it was speculation caused due to unlimited lending of marks by the private Reichsbank, not money printing that destroyed their currency. http://www.webofdebt.com/articles/bankrupt-germany.php It's very difficult to have hyperinflation when you still have a functioning economy. Almost all examples of hyperinflation result from huge economic shocks that devastate an economy so much that leaders think printing money is the only solution to growth. Hyperinflation happens only when due to war, famines or misgovernance, production declines, but instead of trying to solve the root issue, the governments in power turn on the printing press with full gusto.]]></description>
			<dc:creator>Bruce23</dc:creator>
			<pubDate>Sun, 08 Jul 2012 05:40:32 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other#comment-10424</guid>
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			<title>Robert Walton says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other#comment-10423</link>
			<description><![CDATA[I don't suppose anyone remembers the hyper-inflation in Germany during the 1920s when people went shopping with--literally--wheelbarrows filled with money? The German government printed bank notes by the millions until it was worth as little as a billionth of it's true value. It's all happened before if you bothered to look down the memory Hole.]]></description>
			<dc:creator>Robert Walton</dc:creator>
			<pubDate>Sat, 07 Jul 2012 15:01:37 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other#comment-10423</guid>
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			<title>Bruce23 says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other#comment-10421</link>
			<description><![CDATA[What if this bubble doesn't pop for another 10 years? Does it even matter if the economy deflates a little after expanding for over 3 decades? Do you think after the bursting of the bubble, Chinese people would regress back to the poverty levels 30 years back. Would the outstanding infrastructure (that matches developed western countries) they have built during last few decades vanish in thin air once the bubble pops? Keynesian policies have already done their job of expanding Chinese economy to levels that countries that are fiscally conservative (like India) haven't been able to achieve. In 1980, both India and China were equally poor and now look at the difference between the two countries. What has India achieved by being fiscally responsible..by not overstimulating their economy? An economy where infrastructure in almost non-existent, where half the population survives on less than dollar a day. I don't foresee Chinese economy crashing in next few years, but even if it does, I don't see that a temporary collapse in growth would result in India overtaking China. Look at the larger picture of what China has achieved by not following the preaching of classical economists.]]></description>
			<dc:creator>Bruce23</dc:creator>
			<pubDate>Fri, 06 Jul 2012 05:09:01 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other#comment-10421</guid>
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			<title>steveaz says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other#comment-10420</link>
			<description><![CDATA[Aus34, Keynsian clerics? FYI, I've taken one macroeconomics course i n college so I am hardly in some club.. So there is no need to fling feces. Rather than draw on your ideology, why don't you use logic and explain to us how decreasing the real rate of interest will not stimulate more spending ?]]></description>
			<dc:creator>steveaz</dc:creator>
			<pubDate>Thu, 05 Jul 2012 16:12:56 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other#comment-10420</guid>
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			<title>ReggieMiddleton says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other#comment-10419</link>
			<description><![CDATA[China is in an undeniable bubble ready to pop (or deflate), now. It may not have been the case 13 years ago, but much of the supposed economic growth that would have enabled China to save the developed world was simply overstimultion, the same thing that boosted the US housing markets.]]></description>
			<dc:creator>ReggieMiddleton</dc:creator>
			<pubDate>Thu, 05 Jul 2012 15:39:58 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other#comment-10419</guid>
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			<title>Bruce23 says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other#comment-10418</link>
			<description><![CDATA[Aus34, Please read this article written in 1999 about China's flirtation with Keynesian economics.. http://www.thefreemanonline.org/features/chinas-flirtation-with-keynesian-economics/ 13 years later, China still continues to grow at 9-10% every year, rapidly industrializing , building infrastructure at a breathtaking pace and pushing millions out of poverty. I'm chuckling at the author's doomish outlook of declining exports, declining economic growth, collapsing domestic consumption.. 13 years later, his predicted 'sharp corrections' or 'collapse in industrial production' haven't taken place. But even today, financial blogs and mainstream media dominated by free-market champion continue to predict slowdown and crash-landing of Chinese economy..LOL So who is being dogmatic?]]></description>
			<dc:creator>Bruce23</dc:creator>
			<pubDate>Thu, 05 Jul 2012 15:01:16 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other#comment-10418</guid>
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			<title>Bruce23 says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other#comment-10417</link>
			<description><![CDATA[Ryan, it doesn't matter how the poor spend the money - wisely or otherwise. Recessions happen due to fall in consumer demand and the best way to increase consumer demand is to provide jobs to the poor. Unlike the rich, who invest most of their wealth in property, gold or equity (which doesn't increase consumer demand, only creates speculative bubbles in few sectors), the poor have no choice but to spend on consumer goods. Does this spending result in money going back to the rich? Sure..but it also goes to middle-class shareholders and employees of corporations whose spending power increases due to rise in dividends, stock prices and salaries. Printing money doesn't result in wealth creation, but it is a useful device to be temporarily used to extract recessionary economies from the hole they find themselves in due to cyclical decline in consumer spending.]]></description>
			<dc:creator>Bruce23</dc:creator>
			<pubDate>Thu, 05 Jul 2012 14:06:43 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other#comment-10417</guid>
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			<title>Aus34 says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other#comment-10416</link>
			<description><![CDATA[Reggie, Please dont waste time on Keynesian clerics like Bruce ans Steveazss whose duty it is to protect the "true" doctrine that money printing leads to economic growth. Obviously they believe ot does something good when it doesn't. You'll learn sooner or later their dogma is not to be challenged.]]></description>
			<dc:creator>Aus34</dc:creator>
			<pubDate>Thu, 05 Jul 2012 12:39:34 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/6111-the-difference-between-money-and-wealth-and-why-you-can-easily-print-one-but-must-actually-create-the-other#comment-10416</guid>
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