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Strategies & Market Trends : Beat The Street With SI Traders

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To: grusum who wrote (91230)11/20/2011 4:10:27 AM
From: E. Charters1 Recommendation  Read Replies (1) of 233785
 
You are assuming a constant surplus due to money that is provided over and above normal needs. hmmm.. well this is a complex equation in fact. This excess money will not hold its value for the simple reason that it is excess. Any times you have excess money to goods needed, the value of the money declines. A surplus producing economy is inherently unstable. I think you are referring to the efficiency of our technology producing more stuff, which gets consumed. This becomes needs. Everybody does not need ten cars, so we don't produce them. If we did, then cars would be worth only a few hundred dollars each. The argument that cars cost more than that to make does not hold, as if we could produce that many they would not cost that much. Value declines to equal the cost to produce very quickly.

There is a conundrum. All the goods made by all the people have to equal the money available to buy the goods. But the worker makes less than the price of the goods. Where does the money come from to buy the goods?

EC<:-}
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