[quote=sobmaz]
The newly created capital is used to buy necessities, necessities that are increasingly made in Asia.
Mr. Ching Chong, is lifted out of poverty producing what we now fail to produce for ourselves. Mr. Chong, takes his new economic freedom and buys MILK. Hey buys oil.
So, your average guy isn’t getting more, however more people now have the means to buy world commodities.
The situation is, we can now create infinite amounts of capital out of thin air, lifting billions out of poverty but mother nature just won’t cooperate with that infinite word.
Prior to 1972, capital formation had limits.[/quote]
That newly created capital is not used to buy anything. It is not in the hands of people who do any real buying. It never leaves the vaults of financial institutions.
