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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (15483)	2/23/2002 8:21:31 AM
From: Don Lloyd	Respond to of 74559

CB - ...I expect Don to say that there were simply too many dollars. Others would say there was not enough gold.... If something is capable of serving as money, any amount of it will do whatever money will do. It's arbitrary changes in quantity, either increases or decreases that are problematical. ...Don suggests 100% gold reserves, which would go against hundreds of years of using fractional reserve banking. ... That would be precisely the point. Fractional reserve banking is the primary source of large short term money supply variations, largely credit expansions and collapses. Regards, Don