rudd's scheme for commercial property projects, page-21

Good points jdvic... this is where inflation comes into things - agreed that money spent will go into circulation, etc... inflation is where we all feel that our net worth expands over time. You make small arbitrages on everything you do or you add value along the way. Everyone does this, everyone nudges prices up every so often, etc and hence why the circulation of money keeps moving and inflation does its bit to help it all along.

Of course deflation is what we need to worry about in a big way - look at what happened in Japan for 10 or so years.

My thinking is that the Govt's recognise this and esp. in the US have the printing presses rolling out new money at a rapid clip. This means that inflation is set to return at some point and some assets, commodities, etc are going to look real cheap now compared to in a handful of years when mega inflation starts to take a hold.

Just my 2c