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To: Clarksterh who wrote (57262)	4/1/2006 10:00:17 PM
From: Dave	Read Replies (2) \| Respond to of 110194

"I'd bet that increases in money supply do not always lead to increased inflation" There are always exceptions to the rule and, shooting from the hip, I bet you can find quite a few. "And, more interestingly, I'd bet that tightly controlling money supply probably has some seriously negative effects." Tightly controlling the money supply does, also, have negative effects, b/c as the economy grows, increasing the money supply actually has the effect of driving down (or perhaps I should say, "stabilizing") interest rates. If you want to learn more, I'd focus your internet search on Keynesian Economics and the IS-LM curve.

To: Clarksterh who wrote (57262)	4/2/2006 12:04:30 AM
From: mishedlo	Respond to of 110194

Increases in money supply are not the only cause for inflation. Unless of course the definition of inflation is Austrian. In which case an increase in money supply IS inflation by definition. Is this debate about an increase in prices or inflation? ggg If the former, I sure agree that inflation is not the only factor influencing prices. The question is: for those other reasons, what can or should economic policy do to control it? That is not a flippant question. In the case of peak oil what economic policy do you propose to contain it? Can it work? What about our asinine system of medical policy in the US? Can economic policy (interest rates) fix a fundamentally flawed system? If the answer is economic policy can not fix the problem of peak oil nor can it fix stupid government medical programs, then I would hope that we can come to the agreement that the FED should not target prices but money supply, REGARDLESS of the definition of inflation that one uses. Mish

To: Clarksterh who wrote (57262)	4/2/2006 12:01:00 PM
From: shades	Read Replies (1) \| Respond to of 110194

I'd bet that tightly controlling money supply probably has some seriously negative effects. Dr. Suess says our whole society is one of such tight "engineering" no? We try to control where the water flows, where the wind blows, where the grass grows, where the fish go, where the buffalo roam. We try to control what you eat, when you sleep, who you beat, the shoes on your feet, the friends you keep. We have laws for your house, for your car, for your kids, for when you leave the bar. There are many things to control, everything is sunny, you will do as we say, we even control your money! The money will go where we say, we have the guns and that is our way, horde your gold, we'll take it away, this casino is fun to play, you will do it our way or hit the highway. Dont forget citizen - change your time today - spring forward an hour because we say - its better that way! I once asked the hooker to give me a lay - she said your so silly - now go away. She controlled the greatest power, I couldn't even buy it for an hour. Everything around me is structured and engineered, to hell with this shit, Im getting a beer.