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To: At_The_Ask who wrote (207190)	11/28/2002 1:46:00 PM
From: Oblomov	Read Replies (1) \| Respond to of 436258

LOL...No, I didn't miss the point. The money supply is also stated by Parks in nominal dollars, not real dollars. This is consistent with the GDP numbers I gave. You will notice that the ratio of M3 to GDP has grown, from 0.51 in 1950 to 0.79 in 2001. This ratio is the same whether the dollars are nominal or real. Rather than being indicative of a fiat bubble, my view is that much of the growth in this ratio is due 1) to the increase in true wealth (due to labor, innovation, increased efficiency, etc) that has occurred since 1950, 2) differential measurement error in 1950, and 3) to an increase in financial innovation that may in fact mitigate, rather than increase, systemic risk. I agreed with many of his statements, but some of the views expressed by Parks are simply crackpot speculation, IMO. I am not so desperate to believe that I need to rely on fallacious arguments.