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Old 12-01-2009, 10:25 PM   #191
Urbane Guerrilla
Person who doesn't update the user title
 
Join Date: Jul 2002
Location: Southern California
Posts: 6,674
I think they are being cagey with the money to avoid an inflationary effect. Might be the smartest thing they do, given the ease with which fiat-money can inflate.

Even hard specie can inflate like a sonuvagun; look at sixteenth-century Spain and the flood of Americas gold that poured into it. Prices got bid up so high that it became more economical to do anything at all anywhere else but Spain. Gold flowed into Spain and then flowed right back out as the rest of Europe found profit in servicing Spain. Lacking internal investment or development, when the bubble collapsed, Spain devolved into a backwater.
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