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.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (52433)	5/28/2000 9:14:00 AM
From: Haim R. Branisteanu	Read Replies (2) \| Respond to of 99985

Zeew, over the millenniums people were smarter than we want to believe. They issued coins of gold silver and bronze (copper). So if addering to that base I am not sure that pegging paper currency to those metals was such a bad think. Now RE comes also in play as a bona fide reserve. In the past countries got more prosperous by conquering new or others land or RE. Those are productive assets you can grow stuff which people can use and the growth in the efficiency of using land can support economic growth (IMHO services do not count in this category). I think that the major slide to fiat money was wen bronze / copper coins started to be accepted from there the passage was easy to paper if promissory notes bonds or other way of debt obligations ........... after several defaults the masters of the universe realized that most people can be duped in trusting paper with some kind of promise which if you are big enough, you can completely ignore your previous promise. That is how debt restructuring came to life. IMHO that is the basis of currency or fiat money. The exchange value of those pieces of fancy paper called money or currency, is based on the perceived trust in the government issuing them or in their power and not based on any kind of fundamental analysis. Now we may understand why the US is so trigger happy ....... to prove their strength and dominance and between others also to support their currency or under the pretense of economic interests which is actually the same dog....... The strength of the dollar is a great example ....... many people do not trust their own governments ....... mostly after the SE Asia crisis ......... it will take some time for them to realize that the US government is no better and then the dollar will slide. Velocity is a complete different animal which suports growth but do not debase your currency if pegged to real stuff. Velocity and efficency should support economic growht not the printing of fiat money. 100 years ago you needed a carriage to transfer money now it move at the speed of light. Many of my transfers are executed with in 10 to 15 minutes since I place the order from one continent to another ...... and I am a private person not institution. BWDIK Haim