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August 25, 2009 - Goanet's 15th Anniversary
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eric pinto wrote:
> Currency is a necessary inconveniece for most nations. It makes for
> an orderly
> distribution of goods and services, and allows for a little extra to those
> who are
> willing to work a little harder. Tax policy decides on the level of the
> little extra.
> Get greedy, and the misgotten send the likes of Mao, Obama and George
> Fernandes to Parliament.
> ps. Higher economics - Roland owes me 11 cents for the wood spinrope tops he
> splintered, circa 1960.
Doc,
Currency is valuable only when it is in limited supply. When you print more,
you devalue the currency. Period. Until recently in Zimbabwe, a bus ride from
the
village to town was one hundred million billion dollars i.e. about half the
price of
a chicken. When you paid the conductor one chicken, he gave you change in eggs.
The US is following Zimbabwe style economics as it has gone on the largest
money
printing spree in history. Unlike Zimbabwe, the US is marketing the printing
spree
as a "strong dollar policy."
Secondly, I consider you a lucky person. I am sure Roland Francis took your 11
cents
in 1960 and invested it in his favourite commodity, mackerels. Lets see, with
his propeiter
brand of money magic, I am sure he has made enough money from that 1960's 11
cents
to retire the entire US govt debt.
Here is the quote from Roland Francis who insists it is mathematically correct:
"I wish on the basis of what you said that I had bought bangdes
(mackerals) in 1970. An investment of the same four thousand dollars
would have got me 600 million bangdes (taking into account that one
dollar equalled ten rupees then and that one rupee could have fetched
me 150 bangdes in Goa in season).
Now if I had to sit on those 600 million bangdes and sell them today
at say a rupee a bangdo (I am sure they could be sold for more than
that), I would have profited by at least $13.3 million dollars less
the $4,000 initial investment (given the current exchange rate)."
Quite frankly, I enjoy Roland's economic fantasia much more than
that of any US economist today. Any country that loses 14,000 jobs
a day does not have an economic policy. It has an economic mess.
Mervyn1650Lobo
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