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

To: Sunny Jim who wrote (100871)	8/15/2009 1:13:52 PM
From: mishedlo	1 Recommendation Read Replies (2) \| Respond to of 116555

Rothbard An increase in the money supply, then, only dilutes the effectiveness of each gold ounce; on the other hand, a fall in the supply of money raises the power of each gold ounce to do its work. We come to the startling truth that it doesn’t matter what the supply of money is. Any supply will do as well as any other supply. The free market will simply adjust by changing the purchasing power, or effectiveness of the gold-unit. There is no need to tamper with the market in order to alter the money supply that it determines. mises.org that is on page 29 see the section starting on page 26: The “Proper” Supply of Money Note: If demand for money goes up it's purchasing power increases and less of it is needed to buy stuff. That poses no problem because gold is quite divisible Mish