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To: Elroy Jetson who wrote (91122)	10/2/2007 4:14:16 PM
From: neolib	Read Replies (3) \| Respond to of 306849

Yes, that's exactly what I mean. It has provided the basis for economic growth for many civilizations for long periods of time. I think you're so accommodated to the inflation of monetarism that you can't imagine what capitalism looked like. This is not true in the least. People have always beavered away at digging gold. That is why I asked you to apply your zero money supply growth to the USA from the Pilgrims to 300+M. You can't be serious are you? BTW, I'm not wanting to argue, I really want to know how one determines "optimal" growth of the money supply. Right now, your vote seems to be == 0.0000. But earlier you said at least at the rate of savings growth. Could you explain? The Fed seems to think that a rate causing <2% inflation is "optimal" For myself, I have not a clue. But zero does not seem likely simply by a few thought experiments. The delights of a massive tax on savers subsidizing the banking system and government are a powerful lure just like an income tax with a high marginal rate This again confuses me, because it assumes that "saving" consists of storing lumps of metal in a vault where they do nothing. I don't invest my savings in that manner. Perhaps this is why we have such a fundamentally different view. I save by loaning my "money" out to people who do something with it (build houses, factories, buy cars, etc) and pay me back with principle + interest (with an eye on inflation!) Very little of our economy's "savings" simply go and hide in a vault. But if that is the approach, I can see why one would take a great dislike towards inflating money supplies. My own approach is to take a dislike towards "savings" strategies that a bowerbird would relate to. Wrong and amusing, but interesting. So what is your explanation for the lack of success of the gold standard in the marketplace of ideas?