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To: Alex who wrote (42932)	10/14/1999 1:59:00 AM
From: PaulM	Read Replies (1) \| Respond to of 116764

Alex, thanks. That was a gem. EOM.

To: Alex who wrote (42932)	10/14/1999 3:23:00 AM
From: ahhaha	Respond to of 116764

Mundell's greatest contribution was to emphasize the need to reduce taxes on capital in 1974. His brilliant idea was so rejected that he left Harvard and went to Chile to try to bail that country out of economic chaos by introducing a free market system. At that time lowering taxes and free markets were heresy. He is extremely knowledgeable and it has been said that when you argue with Robert, you argue with your hat in your hand. Like Friedman he's getting older now and so has made some compromises with the devil, but you know he hasn't lost it completely when he asserts that the FED is the greatest inflationary machine yet created. It is sad that the greats are ignored while McDonough and McTeer rule. It is inscrutable why this country avoids talent like Mundell and Friedman. I guess it's the only way to bring about the riches of inflation.

To: Alex who wrote (42932)	10/14/1999 6:00:00 AM
From: Bobby Yellin	Read Replies (2) \| Respond to of 116764

columbia.edu "The International Monetary System in the 21st Century: Could Gold Make a Comeback? Robert A. Mundell Columbia University' Alex how is it possible that you can keep on outdoing yourself on your incredible researching and selection abilities Thank you so very much for providing some much incredible information for trying to understand what has been happening and what might happen bobby SO MANY OF HIS QUOTES ARE INCREDIBLE "When the international monetary system was linked to gold, the latter managed the interdependence of the currency system, established an anchor for fixed exchange rates and stabilized inflation. When the gold standard broke down, these valuable functions were no longer performed and the world moved into a regime of permanent inflation. The present international monetary system neither manages the interdependence of currencies nor stabilizes prices. Instead of relying on the equilibrium produced by automaticity, the superpower has to resort to "bashing" its trading partners which it treats as enemies" "The newly elastic international monetary supply was now made to order to accommodate the supply shock of the oil price spike at the end of 1973. The quadrupling of oil prices created deficits in Europe and Japan which were financed by Eurodollar credits, in turn fed by US monetary expansion. The Fed argued that its policy was not inflationary because the money supply in the United States did not rise unduly. The fact is that it had been exported to build the base for inflation abroad. As I showed in an article published in 1971, it is the world, not the national dollar base, that governs inflation.(1) US prices rose 3.9 times in the quarter century after 1971, by far the most inflation than at any other time in the nation's history."

To: Alex who wrote (42932)	10/14/1999 8:08:00 AM
From: Giraffe	Respond to of 116764

My favorite bit of that article ... There will also be a role for gold. The total amount of gold mined since the days of Nefertiti is about 3.5 billion ounces (120,000 tons). One billion ounces is in the central banks, more than another billion ounces is in jewelry, and the rest is in speculative hoards. This last holding is why Alan Greenspan says he looks at gold whenever he gets a chance. I look at three things for signs of inflation in the economy: I look at the money supply, I look at interest rates, and I look at gold. You can see this in the bond market. If there is a big outbreak in the price of gold, you know that there is an increase in inflationary expectations and people will start to sell bonds, sending interest rates up. The stock of gold in the world is going to maintain itself as a viable reserve asset for a long time to come.