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To do that, it isn't enough to regulate the money supply; you also have to regulate the availability of credit.
Hmmm...even Soros is not aware that money is bank credit then...
Well, he then talks about tightening margin requirements and raising reserve requirements so I think he's talking about speculative credit, i.e., money created just to inflate asset bubbles as opposed to investing in creating new (productive) assets.

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes
by Migeru (migeru at eurotrib dot com) on Fri Jul 11th, 2008 at 06:05:31 AM EST
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