Marek,
Yes, hopefully the gold markets will catch fire soon
as in any day now, or week or month, but i hope that
it will not be years unless its next year at the latest
and if so no later than Jan 3, 2002.
Using your analogies, if the gold markets catch fire,
Dow & Nasdaq promised lands of never ending prosperity
might look like the desert on fire as things made of paper
that once were sold as having a value based on only the wishes
of the government to hope that those who obtain the paper wealth
can somehow transform an never ending supply of this paper
into values like goods and services at the same never ending rate
so that the standard of living of all folks can effectively have as its
source of creation the mechanical motions of a printing press
feed paper and ink, rather than the reverse where the printing presses
are set in motion after goods and services are created from the
prior motions of the printing presses.
Imagine a Land where transportation is only walking.
Rather than a man take out a bank loan and create a company
that makes bicycles, and if he is successful in the design
and get another loan to start making them, and being successful
gets another loan to create a big building and hire workers
to create lots of bikes, and from this the workers get loans
to buy bikes, and in the near future all the loans have been
payed back to the printing press machine, but inbetween the
time of the initial loans and pay backs other folks used the
bikes to create other sorts of businesses and ways of commerce
like using a bike to move the farmers crops & livestock to market
when before it could not be done in an easy and timely manner.
So these next generation of loans pulled more money from
the printing presses as new business were created so that
more and more people could interact with each other to exchange
goods and services between them. Yes, rather than that correct
and proper money creation from the printing presses we have had
just the flowing out of loans and credit without any cycle of goods
and services as values created before the next printing press output
into the hands of the people. Almost as if that man with the bike idea
was at the stage that he was still in his garage producing only
one bike per week, but the printing presses put into the hands
of a hundred persons each an amount of fiat money to purchase
a bike. One bike for sale this week for $10 while 100 people
each with $10 on a loan able to buy that bike. Lets see, most
likely 2 people will join and tell the bike maker that together they
will pay him double for the bike using their adding each cash
of $10 so that he is now able to sell it for $20. Oops, then 3 people
get together to buy the bike for $30. OOps'ation Inflation.
or
My Mon & Dad were able to buy a bike for $10 in 1910.
Same type old fashion bike today is $100 ?
The value is the same, the bike.
"... for the thirsty man walking through the desert."
I agree, but i use non flavored and orange juice.
"Absolut kurant&koke have the future."
d:oug |
