The Residential Real Estate Crash Index 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 : The Residential Real Estate Crash Index

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: neolib who wrote (90966)	2/28/2008 8:38:59 AM
From: Hawkmoon	Read Replies (2) of 306849

Neo, In determining economic potential vs required money supply, one needs to take into account the velocity of money. The number of times a given amount of money changes hands (consumption vs savings). Sometimes you have a "stable" money supply, but for whatever reasons (consumer confidence or greater efficiency/productivity), its velocity of transactions increases, expanding economic growth. But the demand for that money can then create pricing pressures. Gold is something dug out of the ground. It's a scarce commodity. And some countries, like oil, have more of it than others, despite the fact that they lack a diversified economy or transparent (translucent?) financial system. Maybe if all gold were required to be immediately tranferred to an international committee of central banks, that distributed it various national banks according to GDP.. But who's going to permit that? And I'm not going to pretend that the current state of affairs is perfect (fractional banking). And I'll fully admit that understanding all the facets of international finance can be mind-numbingly confusing. But I just have an aversion to any system that omits the human potential to innovate and implement economic decisions and/or progress. The Permanent reserves concept does seem to reflect the current SDR (Special Drawing Rights) concept. But SDRs are based upon a basket of various currencies, each of which are not backed by any permanent reserve (commodities or otherwise). imf.org imf.org And if I understand this correctly, the USD, over the past 20 years, has increasingly made up the greater percentage of the value of an SDR: en.wikipedia.org Hawk

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next