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To: elmatador who wrote (28716)	1/28/2008 9:17:31 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 219780

This is basic economics. Money should be both a "medium of exchange" and a "store of value". If you debase money in such a way that it no longer fulfills these two purposes, you introduce massive inefficiencies into your economy. This is a serious problem faced by economies using a fiat money system. These problems do not exist in economies where currency is backed by gold, simply because the growth of the money supply is limited. In modern economies with stable money, the expansion in money supply is offset interest paid on the money. In this way money, even fiat money, remains a "store of value". .