"Suppose I am a banker and I loan $ 1000 to John Smith, with the guarantee of his factory. Then I withdraw a portion of my other loans, thereby reducing purchasing power in the region where John Smith set up his business. As a result of this contraction of purchasing power, "demand", prices will fall and John Smith will no longer make money. Since you have to pay me the interest on the loan I gave you, you start by reducing your staff and installing machinery that saves labor. But I continue to reduce my loans. Prices continue to fall and, in the end, John Smith runs out of resources. Tell me you can not continue to pay the interest. So I mortgage the factory and put it up for sale. I'll give you an offer of $ 800, which will pay off the loan I gave you. A little later I start lending again, and prices are rising again. John Smith's factory now has a lot of value as it has increased again - providing purchasing power - the so-called "demand" of what it manufactures. So, selling the factory now for $ 5,000, I put into my pocket, "in all legality," $ 4,000."
-Arthur Nelson Field
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