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To: Daniel Chisholm who wrote (37428)	7/20/1999 9:37:00 PM
From: d:oug	Respond to of 116790

Daniel, Ron Reese saying that "no inflation is bad for the economy" is simply a statement from a person that needs to understand what is happening. The above words I used, "to understand", is used by Ron in a completely different way than one would use in a study of the sciences or fields like math and study of thinking and behavior of living things. Ron needs to be able to tell others that he knows what is correct so that he obtains the status of a learned one constantly growing with more knowledge to explain to others. "maintaining value over time" and a "store of value" for currency does not let Ron continue using his knowledge base of "whats what" he obtained thru memory of others people thoughts. To me you touched very well on the task we all try to do, save money for the future when we might not be able to work, or for a rainie day. Why must a dollar today be worth less tomorrow ? If so, then someone is causing it, as in to steal the difference. Its as simple as that. If you 100 pennies today is worth 99 tomorrow, then either someone else has taken the 1 cents away from you by force or manuiplation. New money is created thru people creating goods and services, and it does not need existing money "working itself". You can ofcourse loan out your money to someone willing to pay you back extra, but its a risk and can cause you only to loose wealth. The money is still in the system, and if no new goods produced, then no new money needed to be printed. If yes success, then more money printed to give to banks to loan. Please Ron, the above extremely oversimplified with lots of steps left out, so don't say "wrong dougie", as I know it cannot hold water as I wrote it. Money DOES NOT have to be put at RISK for an economy to grow. But you will say risk means investment, and investment is like a loan for money to create new goods and services. Yes, but you are not on the same page for how its done corrected. You Ron need the help of such things as unhonest and favors and payoffs ..... doug

To: Daniel Chisholm who wrote (37428)	7/20/1999 9:46:00 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 116790

One traditional attribute of money is that it be a "store of value", what do you see being accomplished by (moderately) compromising this? Daniel, Only in a relative manner is money a "storehouse" of value. Money is a medium of exchange utilized as a proxy to outright barter of goods and service. Assets are supposed to be a storehouse of value. Assets like a house, real-estate, securities and bonds, or as a last resort rare commodities that have a constant demand. Gold acts as a asset of last resort when there exists doubt in the viability and credibility of the gov't who's currency you are holding. The point being, yes.. to make people participate. The alternative is to have a population hoarding trillions of dollars in cash like the Japanese, afraid to put it at risk for fear for the future and lapsing into a liquidity trap requiring massive govt spending and devaluation/printing of currency (forcing inflation into the economy). So the trick is for the investing public to find adequate places to invest in order to preserve or grow wealth. Bonds are great so long as inflation does not exceed the rate of interest (but now there are inflation adjusted bonds as well). Like I stated before, putting money under the mattress is not guarantee of preserving wealth. That's why a number of other options have been developed, like bear funds, hedge funds(long/short), inflation indexed bonds... etc, etc. But goldbugs make a valid point when they say that gold will climb in value should the credibility of these other IOU's fail. But then again, unless you have the physical stuff, your gold shares or certificates are merely another form of promissory note which are only as good as the stability of the system backing those promises. Regards, Ron

To: Daniel Chisholm who wrote (37428)	7/20/1999 10:46:00 PM
From: d:oug	Respond to of 116790

Daniel, "the trick" & "a number of other options have been developed" are words spoken that should be taken very seriously and acted upon. First thing to do is turn away and run for the hills. Second, before selecting a hiding place check for a nice clear running stream of water for drinking and catching of fish for eating. Berry bushes are also nice, but watch out for bears that will not take it kindly if they see you eating their desert. This bear would make you its next couple three coarse meals or invite its friends over and if a lighting bolt hit a tree they might roast you first. Bottom line is that when you feel that the system of government and economic conditions are out of a wacko horror movie, then do not join those who say "I know the way, just follow my lead.". Better off in the woods on high ground. Doug