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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: Kpain who wrote (15060)	2/3/2009 5:21:24 PM
From: Amark$p	1 Recommendation Respond to of 50416

Your comment: "Interesting that the M1 Multiplier has been decreasing since 1986 yet the price of gold has risen during that same period..I think." Used to be in the 1980's you add a $1 to the money supply and you get $3 with the multiplier, debt levels were low and an investor could make viable investments and grow the economy. As debt grew from 125% of GDP in the 1980's to 350% of GDP last year, $1 added to the money supply only added $1.50. It successively took more and more debt to grow the economy. Increased debt leverage and the laws of diminishing returns. In regard to gold, it is the total debt to GDP which makes fiat currency look suspect and likewise makes gold look good.