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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (73752)	1/16/2000 9:56:00 AM
From: yard_man	Read Replies (1) \| Respond to of 132070

Nice link, but do you really buy this hyperinflation stuff? I know according to Von Mises' theory the inflation (money supply) has already happened, but do you think there'll even be a chance for the price of consumer goods to spike appreciably before the financial markets get some TL & EV? I sure don't think so, but interested in the opinions and reasonings of others on the issue.

To: Mike M2 who wrote (73752)	1/16/2000 10:16:00 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 132070

Mike - From page 233, chapter XIX, Credit and Depressions, in The God of the Machine, by Isabel Paterson, 1943 '...In the United States, the inevitable consequence of the political power extending over money, with the Federal Reserve System, was forecast with detailed accuracy by Elihu Root. He wrote : "This is in no sense a provision for an elastic currency. It does not provide an elastic currency. It provides an expansive currency, but not an elastic one. It provides a currency which may be increased, always increased, but not a currency for which the bill contains any provision compelling reduction... With the exhaustless reservoir of the Government of the United States furnishing easy money, the sales increase, the businesses enlarge, more new enterprises are started, the spirit of optimism pervades the community. Bankers are not free from it. They are human. The members of the Federal Reserve Board will not be free from it. They are human. All the world moves along on a growing tide of optimism. Everyone is making money. Everyone is growing rich. It goes up and up... until finally someone breaks... and down comes the whole structure. I can see in this bill... no influence interposed by us against the occurrence of one of those periods of false and delusive prosperity which inevitably end in ruin and suffering. For the most direful results of the awakening of the people from such a dream are not to be found in the banking houses-no: not even in the business houses. They are to be found among the millions who have lost the means of earning their daily bread." ' Regards, Don