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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (51603)	6/21/2009 2:19:16 AM
From: elmatador	Respond to of 217567

Inflation-deflation and what money is: Money is just a thermometer. It is worthless. I used to tell Germans -whose flag was the DM- and they were baffled. Mises, I read later on, was on my side. Price he said, is a signal to markets. And he also said it was the lack of the price mechanism, in the USSR that made communism collapse. Money is a measure. Like Kelvin, and Celsius. But you know that water boil, freezes and evaporates before thermometers were invented. Even when money did not exist, value did. One could recognize a nest full of eggs, an easy to catch prey. A flightless bird and a river teeming with fish. Your stomach ascribed value to those goods. and the girls in the village ascribed value to those goods too, and you would be value those goods based on the effort to get them and the atractiveness that those goods had to the girls of the tribe. If the measurement of the value of goods go astray, the impact is terrible. You can no longer ascribe value to things based on their demand and supply. Everything becomes subject to manipulation. I can produce a lot of good stuff and tomorrow morning, the price of my effort is said to be valuing 10% less. The other guy put a little effort and his goods are said to be valued 30% more. I will work to death just to keep my belly full, while the other guy is getting rich!!! Vade retro satanas!!! Not only that after gorging in the artificially overvalued goods, the son of bitch hogs the capital, deny me access to it and on top of that call me lazy, idiot and deshonest!! I become a risk not deserved of any capital at all. Thus the seek for a new yardstick to ascribe value to things going on as we speak.

To: TobagoJack who wrote (51603)	6/21/2009 9:22:14 AM
From: Canuck Dave	Read Replies (1) \| Respond to of 217567

Geez, what to do? Another 2008 style meltdown in everything, or the US dollar gets it's due? The 2002-2008 boom acted like a synthetic short against the US dollar, and it got a huge boost from the deleveraging process. This year? Frigged if I know. China has too much copper? Better sell my NGX. Currencies about to implode as interest rates rise? Better get some more NGX for the gold. Or retreat to football metaphors... "When in doubt, punt." CD