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 : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (23134)	9/2/2002 9:38:13 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 74559

Green$pan hasn't mispriced money. It's been done about right [though I thought he should have started slashing interest rates about 5 months earlier than he did - I wondered whether he wasn't helping George II get elected by keeping the squeeze on when month by month went by and there was no cut]. You can tell whether money is priced right or not by the inflation rate. If money is maintaining a constant value in terms of the average person's hourly rate, then it's priced about right. I don't mean the average American's hourly rate - I mean the average human's hourly rate. The US$ is now a global monetary unit so it needs to be priced in global terms. The most basic unit of value is not gold, or a basket of goods and services, but the hourly rate that must be paid to get the median human to do an hour's work. The basket of goods and services approach is too messy with hedonics and all that stuff making pricing particular items and services fraught with difficulty. But an hour is easily measured [in our nicely uniform gravitational field] and the median human pay is easy to find = line them up from 1 to 6,314,159,265 and see what the 3,157,079,632th person is paid per hour worked. Goods and services are fairly well correlated with hourly rates, but better to measure an easy variable than a messy melange of goods and services in a consumers price index. Mqurice