Obama's Stock Market Mini-Bubble - Frank Shostak - Mises Institute

Obama's Stock Market Mini-Bubble - Frank Shostak - Mises Institute: "Obviously, no individual wants to hold more money than is required. An individual can get rid of surplus cash by exchanging the money for goods.

All the individuals as a group, however, cannot get rid of the surplus of money just like that. They can only shift money from one individual to another individual.

The mechanism that generates the elimination of the surplus of cash is the increase in the prices of goods. Once individuals start to employ the surplus cash in acquiring goods, this pushes prices higher."