<DAK, yes, dilution reduces the value of previously printed money>
Worth repeating IMO.
<but my point was that the creation of money, using a few penstrokes and trust in the creator of the currency, is enormously valuable>
Again, there is no free lunch.
<and that it's a heck of a lot easier than digging up gold and storing it>
And my point is that it is interesting that human behaviour is such that without scarcity propensity to hold declines. Like a limited edition lithograph who's mold indeed was NOT broken, the dollar has retained preference for a while, but eventually even the man on the street hears the news:
quotes.ino.com
<Because demand for US$ continues to grow, Uncle Al can print more>
Yes, the central [and in your analysis, under appreciated] tennant in your theory.
<<The fact that pixels and software and hardware are almost zero cost is only slowly percolating through people's understanding.>>
Yes, the herds stampeding into $US assets to buy a piece of our economies 'holy grail' [new economy's promised productivity miracle] are just now beginning to understand that zero cost means zero profit:
quotes.ino.com
<he can capture that value for the owners of the currency. >
No, the owners of the printing press.
< The implications for people are enormous. The telecosmic black hole and cyberspace shrivelling to a faint shadow of its past has misled people into thinking it was all a big mistake and that it's all gone away. >
No, it's made people realize that when things are free and there are no profits, they shouldn't have invested in them... ie. it was all a big mistake.
Foreign investors in the 'new economy' are selling their dollars now:
<Major paradigm shift is happening.>
It sure is.
DAK |
