Heinz Blasnik- Views You Can Use Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Heinz Blasnik- Views You Can Use

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: GraceZ who wrote (2403)	6/11/2003 1:45:38 PM
From: yard_man	Read Replies (2) of 4913

>>Money is just a medium of exchange. If the number and value of exchanges goes up the money supply has to grow in order to provide enough "medium of exchange" to transact.<< Simply untrue. Beyond being conveniently divisible -- there is no "right amount" of money. What is important is that the supply be stable without reference to the amount of activity taking place. Growth in the formation of real capital (resources that can be reinvested in new or additional production) by no means requires the expansion of the money supply -- one could almost say the reverse -- to the extent that new currency is exchanged for something, but acquired for nothing. >>The negative consequences of the money supply not growing fast enough to cover the growth in the economy is well documented. Back before people fully understood this we were plagued by debilitating periods of deflation and banking panics. << More revisionist BS!! What is needed for a healthy economy is capital accumulation in concert with the preference of consumers being freely expressed in the marketplace. Increasing capital formation and increasing productivity => naturally falling prices. Such naturally falling prices don't impede economic growth The examples you would cite are all precipitous declines brought about by the inflationary policies beforehand. H*ll!! It's going on right now ... the economic contraction we are seeing now (minus government spending) is the symptom of the easy money policy that went before. All avoidable.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next