SI
SI
discoversearch

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.
Gold/Mining/Energy : Gold Price Monitor
GDXJ 99.85+6.2%Nov 24 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: ahhaha who wrote (34704)6/1/1999 1:02:00 AM
From: Bob Dobbs  Read Replies (3) of 116764
 
Ahhaha: You have a fresh, innovative view of economics and I largely agree with you, however I wanted to discuss some points in your latest.

<<The prices of goods would have risen regardless of FED activity. A good which must be produced will have to rise in price since its production cost has risen.>>

This is a logical fallacy. Assume a snapshot where money supply and goods supply is constant. Assuming the demand for a single good does increase, and more money chases it and it rises in price. BUT what about the rest of the goods? There is LESS MONEY AVAILABLE TO CHASE THOSE OTHER GOODS and consequently, their price DECREASES. On the whole, then, the average price is the same! There is no "inflation". This topic is taken up in the fabulous book "The Alpha Strategy" by Jack Pugsley.

<<There was no massive inflation during the 19th or any century before the 20th.>>
There was massive inflation (loosely interpreted as an increase in the price of goods) over virtually every century in man's history due to debasement of coinage and other factors. Witness the inflation during the Thirty Years War in 1622. How bout the massive influx of gold to Europe during the Spanish Conquest of the 1500's?

Bob
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News