Nevertheless, what you wrote ignores actual values reflected by the market needs. In there is a true inflation, then there must be more markets needing your service or product. Deflation is just the opposite, and often a result of excessive manipulated inflation. Money must reflect actual exchange rate between things. Money cannot decide the values of things, but things should decide the value of money. In simple terms, when gold goes up, dollar goes down. That is all one needs to remember. Anna ----- Original Message ----- From: Deus Ex Machina To: [email protected] Cc: [EMAIL PROTECTED] Sent: Tuesday, November 22, 2005 5:01 PM Subject: Re: [Libertarian] great essay on Money
Rocky [EMAIL PROTECTED] wrote: > OUR MONEY MADNESS > Thus spake Bernanke to those worried about deflation: "the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation." why are economic illiterates writing articles? if the government didnt grow the money supply in line with the growth of value creation we would get deflation. most central banks target a small amount of inflation to ward off deflation which is a far greater problem. a small amount of inflation also reduces the real amount that the gov has to pay for its debt. fiat money is the best thing invented since sliced bread. Vic ForumWebSiteAt http://groups.yahoo.com/group/Libertarian SPONSORED LINKS E government Libertarian E government strategy Libertarian party E government procurement ------------------------------------------------------------------------------ YAHOO! GROUPS LINKS a.. Visit your group "Libertarian" on the web. b.. To unsubscribe from this group, send an email to: [EMAIL PROTECTED] c.. Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service. ------------------------------------------------------------------------------ [Non-text portions of this message have been removed] ------------------------ Yahoo! Groups Sponsor --------------------~--> Get fast access to your favorite Yahoo! Groups. Make Yahoo! your home page http://us.click.yahoo.com/dpRU5A/wUILAA/yQLSAA/KlSolB/TM --------------------------------------------------------------------~-> ForumWebSiteAt http://groups.yahoo.com/group/Libertarian Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/Libertarian/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
