what would be a distinction between homogenous capital and heterogenous capital?
“Cameco Australia’s $4-million 1999 exploration program now equals Cameco’s uranium exploration program in Saskatchewan.”
http://www.cameco.com/media/news_releases/1999/?id=371
i am not sure if the above linked info is true. but it mentions that a company called cameco spent 4 million on uranium exploration.
scenario…
if the 4 million was a bank loan…i guess loaned (as i have read at mises sites and others) from various types of deposit accounts and the bank added credit (based on 10 % RR) in the amount of 3.6 million would this be the process that could lead to boom/bust cycles described at mises.org?
some of a 4 million dollar loan is spent from a lending bank to set up a mining operation in the wilderness…but the townspeole where the lending bank was still spend credit as if it was money (3.6 million dollars) .
iow
the original 4 million dollar loan purchased distant capital goods for mining and many goods and items in the town along with the 3.6 million in bank credit now in depositors accounts…pushing up various prices of consumer goods
i am unclear about unpleasant changes the production arrangement mentioned in the post.
would the additional credit-spurred demand of consumer goods be the be the catalyst for malinvestment?
for instance, a sudden increased demand for office supples leading to additional malinvestmetns in office supplies?
if 3.6 million in bank credit had not been created would the bank loan likely not have taken place?