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Politics : Mainstream Politics and Economics
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To: Little Joe who wrote (6850)1/13/2012 10:34:02 PM
From: grusum  Read Replies (1) of 85487
 
Yes it will work for many years but in the end it has to fail, it is simply a matter of time. The fed can't avoid cheap money because it is necessary to constantly increase the money supply in order for there to be enough money to repay principal plus interest.

so you think the number of dollars, determines a dollar's value? if that's true, how can there ever be price deflation? there's never fewer dollars. and if there's never fewer dollars, how can prices go down? we've obviously had deflation a few times since fractional banking came into existence. how did that happen?

don't you think it's obvious that there's more to the value of a dollar than just the number of dollars in circulation?
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