Council of Canadians - credit question

[Max Sawicky]

. . .
Money arises in exchange. Certainly there's an extension of credit 
involved, but there has to be some real sector involvement or the 
money is going to be worthless. Central bank extensions of credit 
without any offsetting expansion in productive capacity will be 
inflationary. Sometimes that appears as a rising CPI; sometimes as a 
wacky stockmarket.  Doug

oh yeah.  And another thing.

An extension of credit with no offsetting expansion in
productivity capacity may be inflationary, but the money
is far from worthless on that account.

mbs