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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Jim S who wrote (36417)	7/3/1999 2:35:00 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 116758

Jim, assuming that the velocity of money is constant (and I think it might actually creep up with technological innovation), then you want the aggregate money supply to grow at exactly the same rate as the economy, this will assure that there is a balance between money available and goods available. If that money is "tied" (via a legal exchange rate as it used to be in the "good old days") to gold, you would have to have the growth rate of gold match that of the required money in circulation, that is "a straight jacket" that the world economy does not need anymore, IMHO. As I have explained, to increase the growth rate of mining to match the world economic growth you'll need to access ever more expensive ores (less rich and more costly to extract), thus causing permanent inflation. You may also make "ssumptions that the percntage of the population working at supplying the fuel to world economic growth should always be the same, a strange assumption in aworld where fewere and fewer people are producing "hard goods" for more and more people that are providing services. Zeev Zeev