Money creation

D.L. boddhisatva at
Tue Apr 11 16:51:39 PDT 2000

>It's not the government that has a problem: the foreign capital
>inflow has effectively been financing a marginal propensity to
>consume of over 100% throughout this expansion, and, more recently,
>(corporate investment + stock retirements) > cashflow. While a
>reversal of the inflow wouldn't mean the onset of Armageddon, it
>could involve loud crunching sounds.

Right, but why should the flow reverse? Why should treasuries become a bad investment?

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