corporations can't resist a customer with cash in her hand
public transfer systems that flood borrowed funds
to credit constrained spending units
can induce corporations one by one
despite their collective prudence
their "will to resist" expansion
to ... in fact expand
no pub can't get firms to borrow
simply by lowering rates and standards
not even by pumping in cash... yup tax credits
simply get banked away
but a cash customer unsatisfied doesn't go home
and put her cash under the mattress
she goes elsewhere to the rival ass hole outfit
to spend her money
and recall all corporations are any corporation's rival
if they're not in the same bank centered cartel
once inventory is run down
new orders must be made
and plants must fill the new orders with new production
enough cash customers enough orders production capacity moves back toward full use
and firms begin to add new capacity and new "hands and heads "
bingo
----------------------
normally the firms in aggregate are credit constrained
they would borrow more and be able to repay it if the potential credit rations were unlimited
the fed sees to it they are limited
but what happens when the credit constrained aggregate suddenly isn't constrained
because the aggragate of sound borrowers has a sufficiency of credit already ???
the fed soon discovers unlike normal times
the central bank
no longer can control the production systems rate of production
