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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Mike Johnston who wrote (25837)	12/11/2004 10:24:58 PM
From: GraceZ	Read Replies (2) \| Respond to of 306849

Can you please explain, why do you think that money has to be added to the money supply if there is some service performed ? I don't think that. Most money is simply passed from one individual to the next. If you want to understand why the supply of money has to grow over time try to imagine the US with the same amount of money we had in say 1965. It would amount to around 10k per capita. How would things be different? Ideally the money supply should grow at the long run rate of productivity growth which is around 2-3%.