Nate posts his first post-Cyprus response:
It is with no small amount of sadness that I must now face the fact that I am not going to get out of this debate without having to explain mal-investment. It appears in order to counter Vox’s deflation via credit reduction claim… it is absolutely necessary.
Ok so M1… TSM2… Z1… what is it?
As I stated before… you’ve already answered that question for yourself. Vox can write poetic and convincing lines about the esoteric nature of credit money… and he can explain how the paper just represents a claim on this or that… and none of it will change the fact that when you hear about what’s going on in Cyprus… you have a primal urge to run to the bank and get all of your cash out. You want the cash.
That’s because the cash you want is money. For now.
The debit card is very convenient. No question. But by now you are probably looking at it with much more cynical eye than you were a month or so ago. Good.
Read the rest of it there.