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To: GST who wrote (241168)	3/16/2010 6:30:39 PM
From: TH	Read Replies (2) \| Respond to of 306849

GST, <money supply growth that is in keeping with overall growth in the economy is not an issue> I'm not disagreeing, but how do you measure it? How do you stop a multiplier effect? What is the metric for Goldilocks's just right? What about money that is created and then "trapped" as part of forced reserves to meet capital requirements and withdrawn just before it enters circulation and is levered up? Of course this is exactly what Ben claims he can do. My concern is that the Fed has proven (and I mean PROVEN) that they have no ability to see what is to unfold and thus have absolutely no ability to correctly withdraw at the right time. My favorite proof is this well-worn video of the King Monkey. youtube.com GT TH

To: GST who wrote (241168)	3/16/2010 6:36:11 PM
From: ChanceIs	Read Replies (1) \| Respond to of 306849

RE: Money Supply I don't think that we are too far apart. I think that one unit of money should be created when one new unit of wealth is called into existence, and perhaps visa-versa. It is clear that the US is loosing wealth at the current juncture. Don't mean to be brutal, but all of these unemployed folks are consuming food and not producing anything. Again, not trying to be unsympathetic. So food is being destroyed (consumed) with nothing to gain. Not good. I don't really think that it is a good idea to decrease money supply right now with this decrease in wealth. Wealth is hardly a static entity. Floods, fires, riots, oil finds, scientific discovery, etc. No way to measure it really. Just look at the price changes of what should be stable (eg wheat, water, crude, haircuts) and tweak it.