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

To: Hawkmoon who wrote (53146)	5/22/2000 10:37:00 PM
From: LLCF	Read Replies (2) \| Respond to of 116762

<And then what? How would the available gold mining production support the rate of global economic growth? Is there that much gold?> No, no, no... the dollar would slowly float down against gold by the amount of extra supply deemed necessary by the fed to keep the economy lubricated... ie. if you're a monatarist by the approximate growth rate. What's wrong with that? In fact, everyone could easily compare what was going on with each currency vs the 'gold standard', who was printing away like nuts, who wasn't... and you'd have inflation to the tune of your growth [if prudent] just like now. The rest of your post is drivel predicated on the global money supply being held in check by gold production. DAK

To: Hawkmoon who wrote (53146)	5/23/2000 7:16:00 AM
From: Don Lloyd	Read Replies (1) \| Respond to of 116762

Ron - [...How would the available gold mining production support the rate of global economic growth? Is there that much gold? It would require an all-out "Manhattan Project" style gold mining and production effort, probably outstripping the current efforts to explore for oil just to provide sufficient gold to permit normal economic growth to occur. We couldn't make business loans unless enough gold was available to cover the increase in money supply such debt would entail, regardless whether that debt would translate into later wealth by providing a new technology or service...] There is no need for the money supply to increase to support economic growth or anything else. From economist M. N. Rothbard's 'Man, Economy and State, A Treatise on Economic Principles, Vol. II', page 671 - "...David Hume's famous example provides a highly oversimplified view of the effect of changes in the stock of money, but in the present context it is a valid illustration of the absurdity of the belief that an increased money supply can confer a social benefit or relieve any economic scarcity. Consider the magical situation where every man awakens one morning to find that his monetary assets have doubled. Has the wealth, or the real income, of society doubled? Certainly not. In fact, the real income - the actual goods and services supplied - remains unchanged. What has changed is simply the monetary unit, which has been diluted, and the purchasing power of the monetary unit will fall enough (i.e. prices of goods will rise) to bring the new money relation into equilibrium. One of the most important economic laws, therefore, is: Every supply of money is always utilized to its maximum extent, and hence no social utility can be conferred by increasing the supply of money. ..." Regards, Don