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To: Follies who wrote (46055)	6/10/1999 9:34:00 AM
From: BGR	Respond to of 86076

Dale, I can see where your concern is coming from. However, I think that you are misplacing it: 1. Redistribution of wealth: At first glance, massive printing of paper currency reduces the value of the paper wealth already in possession. However, such is not the case if the rate of growth of the economy matches the rate of growth of circulating money supply as paper currency is certificate of ownership of a part of the economy. In fact, if money supply doesn't grow as the economy grows, those already holding paper assets have just become richer as would be the case with the gold standard, as the supply of gold in nature in limited. TBH, what will really happen is that a parallel barter economy will start as the price of gold will skyrocket and liquidity will decrease, hence gold will lose its value as a currency. And barter economies are inefficient. BTW, I sort of like redistribution of wealth ... :-) 2. Inflation is measured against a broad basket of representative sampling of goods that are consumed on average by the society. Hence, it is incorrect to look at inflation through the lens of a single (or a collection of specific) commodities. 3. I believe that the Social Security debt will be taken care of by enhanced productivity. -BGR.