Sorry Frank, sometimes it's not clear to readers when I'm kidding. No, Al is not really my Pal and nobody is meant to be impressed by my 'name dropping'. It was just meant to be a way of saying I think he's good and I just liked that Al and Pal rhyme. No, we are not 'kinky' together, neither do I 'sleep with that guy' which of course I can't do since we have never had anything to do with each other apart from being at different ends of the monetary spectrum. Not, I hasten to add that I would wish to. Not, I hasten to add, that I am homophobic - why, some of my best friends are homosexuals...sorry getting off track there.
He creates and shrinks or enlarges the size of a dollar and how much interest it costs to borrow in the short term and I decide whether I want to hold it, borrow it or get rid of it.
Pretty straightforward. Once you understand how his mind works, and that of governments in general, you can have a fairly good idea of whether he'll be making dollar notes bigger or smaller. Which is a way of explaining what he does when he expands or contracts the money supply = he is adjusting the value of a dollar, that is, it's size.
When the measuring stick you use to measure something changes in size, it's difficult to figure out just how big something is. That's what happens with money. It doesn't have an absolute size, such as so many Angstroms of the wavelength of a CDMA photon right at 2GHz in earth's gravitational field at the surface of the earth in the year 1999 at 00.00.00 on 27 July etc. Or the length of King Alan's arm. It is an arbitrary size. They used to try to make it the same size of gold. But that made gold an arbitrary thing whose 'size' depended still on the whim of a billion humans. Money is a whim. The value is a whim. Let's just hope people don't get too whimsical because we need stable money.
Which of My Pal Al's mumblings were rediculous please? Maybe you have a point, but it isn't apparent yet. Most of the moans seem to be like anyone with 'sticker shock - they expect and want to have the supplier work for less money. Bad luck folks. People don't want to work for you for free. They want a nice big pay cheque from their savings.
Some of you seem to think that wages [for cash holders and maybe others - not you] should fall. Wages for workers or cash holders should be high. Prices should be falling and that is good. Deflation is only bad if it is resulting from economic problems - if these other things are happening, it is not 'bad' deflation. Profits should be rising and that is good.
If anyone can say where I'm wrong, I'd appreciate it, because my wages depend on this being right and if it's wrong, I need to know about it or go to the poorhouse with Frank and Morgan.
Mqurice |
