[quote=threadkiller]Money Jan/Feb isue has some interesting stuff for the lay investor. It explains that the government isn’t really printing money but giving banks credit on their credit sheets for reserves. Now as long as the banks don’t loan out on this “cash reserve” then we don’t seem to see the inflation. Once the banks feel confident we are on track towards recovery then they will loan and we will have inflation. Until then BAU.[/quote]
There is no demand for the money because the public is saturated with debt. This does free up extra cash for banks to speculate on, though. Hence, the commodity bubble.
So basically, the people are broke and debt encumbered while the banks are running up necessities in gambling schemes. lol
