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To: gpowell who wrote (28493)	3/22/2005 12:54:45 PM
From: Elroy Jetson	Read Replies (3) \| Respond to of 306849

Economic history does not support your comments. There have been occasional atypical situations where deflation has not been a normal every day occurrence in growing capitalist / mercantilist economies. One such example occurred when Spain brought in large quantities of gold from the Americas. This dramatic increase in their money supply led to the eventual collpase of their economy - almost as if Milton Friedman had been in charge. Another occurred in France in the early 1700s when John Law created the "system" which Milton Friedman spent his life re-creating. Apart from the occasional oddity deflation proved the standard, even where fractional banking was widely employed such as the Bank of Venice and the Bank of Amsterdam. People like yourself are so accustomed to a Monetarist system, where money loses significant value each year, you don't realize what a historical oddity this is. There is an entire history of the world which has existed apart from the perversions of Milton Friedman, John Law and other currency cranks. .