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Re: James A. Baker III

----------
>From: GGard97342@xxxxxx
>To: pkt@xxxxxxxxxxxxxxxx
>Subject: Re: James A. Baker III
>Date: Wed, Dec 20, 2000, 10:18 pm
>

>In a message dated 19/12/00 15:44:31 GMT Standard Time, hliu@xxxxxxxxxxxxxx
>writes:
>
>> Every economist agrees that when money growth slows, interest rates go
>>  up.
>
>Not sure about that, Henry. Surely a slow growth of money reflects a low
>demand for loans. Loans create money growth, not the other way round. No
>power on earth can create money which is not already lent.

As a matter of fact it happens routinely and is known as "interest".
A borrower may spend credit and a lender may spend interest.

Harry Veeder
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