You can print all the money you like, but if the sum market "value" of hard assets is decreasing faster than the increase in purchasing "power" of the new money supplied, then you have deflation. Even worse, if that extra fiat is stashed under the mattress instead of being kept in circulation the decrease in market "value" of hard assets (apart from precious metals) accelerates. And although the banks will try to hoover up that stashed cash, they won't be all that keen to lend it back to those of the 99.9 percenters out there who want to have yet another crack at negative gearing or similar crowd-driven "investment" strategies.
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- no rapid credit growth = no rapid price growth
no rapid credit growth = no rapid price growth, page-16
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