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Old 01-29-2009, 07:39 PM
  #11  
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Joined APC: Jun 2008
Position: USAF
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Originally Posted by RXS676
Agreed. My point is that the amount of paper currency in circulation really doesn't have much significance.
It does and it doesn't... on a very micro level it does, on the grander scale it doesn't. However in the micro model the ability for individuals to acrue wealth and spend it will justify the need/ or lack of need for credit.... in which if there is a "liquidity trap" (I don't believe that to be the case anymore), then physical currency would really have significance going back to the demand-purchase side of things.
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