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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (70623)	10/29/2007 6:58:15 AM
From: JohnG	Respond to of 116555

"There is a simple proof" When you get a chance, I/we would be very interested. JohnG

To: mishedlo who wrote (70623)	10/29/2007 11:04:22 AM
From: Tommaso	Read Replies (1) \| Respond to of 116555

Mish, One cannot simultaneously argue, as did Keynes, that "money doesn't matter" and also with Friedman, that inflation is everywhere and at all times a monetary phenomenon. If the monetary unit loses purchasing power in comparison with other monetary units, those holding the unit that is losing value will have to exchange more of that unit for what they buy. They will be outbid by the holders of the more valuable unit. Hotel rooms in New York City that not long ago were $200 a night are now over $300 a night because holders of euros, Czech coronas, or whatever can now afford them. Just one minor example.

To: mishedlo who wrote (70623)	10/29/2007 3:12:32 PM
From: sea_biscuit	Read Replies (1) \| Respond to of 116555

Pricing unit is 100% irrelevant.... ... if you are buying right here and right now. But if you are saving up money to buy later, you better save in terms of the pricing unit, or else, you will be faced with not one, but two fluctuations - one, in the price of the commodity itself and two, in the exchange rate between the currency you saved your money in and the pricing unit. There is a simple proof. I will do it in another post. Looking forward to that. Do it before OPEC ditches the dollar! :-)