> Real estate that has collapsed in value The value of the collateral is meaningless. Either there is inflation or not. If there is no inflation the increase i

> Real estate that has collapsed in value The value of the collateral is meaningless. Either there is inflation or not. If there is no inflation the increase in the money supply is good because it prevents deflation. If there is inflation you're out of a liquidity trap and there is no need for these special measures. > How do you know? Not me. We. Regression analyses on the relationship between employment and inflation/deflation levels are measurable and can be calculated with robust large scale data sets. This is called the Phillip's Curve: http://en.wikipedia.org/wiki/Phillips_curve http://en.wikipedia.org/wiki/Phillips_curve