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

To: Zeev Hed who wrote (70664)	5/29/2001 7:03:47 PM
From: Box-By-The-Riviera™	Read Replies (2) \| Respond to of 116753

point to zeev hed

To: Zeev Hed who wrote (70664)	5/29/2001 8:04:33 PM
From: Ahda	Respond to of 116753

The last two international currency crisis have proven that We were by standers in both instances. The soundest policy in my opinion any nation can have at this present time is not let their dollar inflate to the point where there is limited growth potential in it's home base.

To: Zeev Hed who wrote (70664)	5/29/2001 8:53:23 PM
From: yard_man	Read Replies (2) \| Respond to of 116753

OK -- here's your silly argument again -- maybe you'll get it this time. Here's your premise: >>>Gold can only be mined at a given rate ... Rate of increase in the worlds production of goods exceeeds this rate of new gold production by some amount.<< You said this implies runaway inflation. Nonsense!! If we are on a gold standard the same amount of gold buys more goods as the world's growth in the production of goods outstrips the production of gold. You mistakenly called that inflation because you resort to a paper currency as the ultimate value -- that's not a gold standard -- with a gold standard -- an amount of gold serves as the currency. If the amount of gold in circulation grows more slowly than the amount of goods. Gold can buy more goods as time wears on. That's not inflation -- inflation is when is takes more and more of the same currency to buy the same amount of goods. Your simple example results in a currency that appreciates in value against the worlds goods. Of course, I realize that is d&mn near a foreign concept to most A few more things which many espousing such great economic knowledge don't understand. A currency buying more goods as time wears on can be healthy and in no way implies a contraction is taking place.