Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: ed who wrote (27547)	7/30/1999 9:26:00 AM
From: DownSouth	Read Replies (2) \| Respond to of 74651

Sorry, ed. I don't have the time nor interest in engaging in a discussion with you about basic economics. If this is a genuine interest of yours, I suggest you take classroom course and do some reading. Good luck in your investing.

To: ed who wrote (27547)	7/30/1999 11:01:00 AM
From: PMS Witch	Respond to of 74651

I don't want to get too off topic with this inflation stuff... If we understand that money is a storage of value. We can exchange money for goods and services because we can agree on exactly how much goods and services a quantity of money will purchase. We often fall into the trap of thinking a good or service is worth a quantity of money and forget that we should be defining the value of money in terms of its goods and services equivalent. Here's the catch. Because we think the money itself has value, we're fooled into putting a price on it: The interest (rent) rate. Inflation, and deflation is the result of inappropriate pricing. A secondary challenge comes from trying to use money to store value between transactions. Because we need to do this, we must have a supply of money available for this purpose. Again, too much money, leads to inflation: Too little; deflation. The real problem is that there is a time lag between increasing the supply of money and the market realizing the supply was increased. During this period, the supplier (government) gets 'money for free'; hence the temptation is overwhelming. Here's the value of a strong watchdog, Greenspam, in U.S., looking after things. It keeps the politicians from raiding the treasury and destroying the economy, creating the appearance of prosperity to insure their own re-election. I hope, by making my post brief, I haven't truncated so much that it becomes misleading. Anyway, the topic is complex and requires considerable effort to comprehend, but worth the effort. Cheerios, PW.