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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: GST who wrote (241168)3/16/2010 6:36:11 PM
From: ChanceIsRead Replies (1) of 306849
 
RE: Money Supply

I don't think that we are too far apart. I think that one unit of money should be created when one new unit of wealth is called into existence, and perhaps visa-versa. It is clear that the US is loosing wealth at the current juncture. Don't mean to be brutal, but all of these unemployed folks are consuming food and not producing anything. Again, not trying to be unsympathetic. So food is being destroyed (consumed) with nothing to gain. Not good. I don't really think that it is a good idea to decrease money supply right now with this decrease in wealth.

Wealth is hardly a static entity. Floods, fires, riots, oil finds, scientific discovery, etc. No way to measure it really. Just look at the price changes of what should be stable (eg wheat, water, crude, haircuts) and tweak it.
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