To: Don Lloyd who wrote (75153 ) 3/4/2001 12:12:18 AM From: Zeev Hed Read Replies (4) | Respond to Don, whatever the then current psychology about gold (hidden or "known"), if gold serves as the corner stone of the money in circulation, the production of new gold must be at about twice the general growth of the GWP, half to supply the current uses (which one would assume should grow at the same rate as the economies) the other half, to support the growth of money in circulation for a growing world economy. If gold production does not grow at twice GWP, economies will slow (for lack of monetary instruments), or the price of gold will creep up to allow for the increase in the money base (thus perpetual inflation). Since gold production at constant production costs is not growing at twice the economic growth rate, the only way to increase production is to exploit less efficient deposit, at higher cost (and thus higher POG), thus inflation.
