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To: Tommaso who wrote (50040)	4/24/2006 3:03:37 PM
From: patron_anejo_por_favor	Respond to of 116555

All very good points that I agree with....unless money supply is reduced commensurate with decreased unit output, you've got inflation. And with modern CB's, "reduction of money supply" is an archaic term.....Paul Volker is dead (figuratively), long live Blackhawk Ben!

To: Tommaso who wrote (50040)	4/24/2006 4:50:37 PM
From: shades	Read Replies (1) \| Respond to of 116555

But when you lose $200,000 partly as a result of your stubbornness, you realize there is something wrong with your outlook. Holy Smokes - philster says lose your opinion before you lose your money - but what is 200K worthless clown bucks - no big deal eh? They aren't even good toilet paper. If the output of goods and services available to the purchasing public is constrained by anything--war, famine, plague, or a shortage of vital resources--prices will rise even if the same amount of money is available as existed previously. Herb Greenberg just posted an article about a company that was talking about supply constraints and said that made prices go DOWN - herb went HMMM. Contrariwise, if the output of such goods and services increases enormously--as happened in the period 1985-2000--prices will hold steady or decline even if the money supply rises somewhat. In the great depression - monetary inflation was reported to be 7% - this helped soften the declining prices - bernanke has said if they had started inflating sooner - things wouldn't have gotten so crazy - they just needed to inflate earlier. The rising price of oil does not automatically add a premium onto all goods and services. Articles have been posted where oil guru's say the price mechanism is no longer a good way to guage true oil demand and NEED - the mechanics have broken down from evil hoarders and speculators. I am sure lots of helicopter money helped oil the machineworks and make the gears not spin as good as before. And particularly if governments are constantly creating more fiat money, the demand for such goods and services as are available will rise even faster, and will accelerate as people realize that money is a very poor store of value. Ownership of things - without enforcement is no store of value at all eh? If your wealth in qualcomm IP is robbed by thieves and the policeman doesn't go over there and arrest them or shoot them - you have no ownership at all do you? If you own a house and the gubbment takes it in eminent domain - what do you have? Better to be a slave with the borg flying around in space than a free man alone on the desert island eh?