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To: carranza2 who wrote (78990)	9/5/2011 9:05:09 AM
From: bart13	2 Recommendations Read Replies (2) \| Respond to of 217713

"credit is NOT money" Money, at root and per all economic schools (one of the very few things that they all agree on), is a "medium of exchange". Credit, in all its forms, can be used to buy stuff and is therefore money - by definition. "There can be no doubt that besides the regular types of the circulating medium, such as coin, notes and bank deposits, which are generally recognized to be money or currency, and the quantity of which is regulated by some central authority or can at least be imagined to be so regulated, there exist still other forms of media of exchange which occasionally or permanently do the service of money. Now while for certain practical purposes we are accustomed to distinguish these forms of media of exchange from money proper as being mere substitutes for money, it is clear that, other things equal, any increase or decrease of these money substitutes will have exactly the same effects as an increase or decrease of the quantity of money proper, and should therefore, for the purposes of theoretical analysis, be counted as money". -- Friedrich Hayek, Prices and Production, 1935, p. 96 NB: this is one of the very few things that Jesse and I disagree on. The man has been and is on the money -- for years and years.

To: carranza2 who wrote (78990)	9/5/2011 9:26:25 AM
From: dvdw©	Read Replies (1) \| Respond to of 217713

Jesse says; "Money can be created from a number of sources throughout an economy" This is true and the current malfeasance extrapolated guarantees that those with the money ie paper, credits in cyber cash....will be counterprogrammed when or if the glum scenarios being depicted here on SI and everywhere through the produced media happen. Self organized economies emerge from states as cadres of informal interest stipulate. There are several pervasive counterprograms already filling the ether. The hubris of the attacks on people in general will be effectively counter programmed by fiat decisions not to honor what the ego of the elite says the world should expect. This is a guarantee, all the assumptions about Value, are simply projective identification to be counter programmed. All derivative actions will be counterprogrammed, leaving the programmers themselves penniless. the plan-no-gram being scripted is made by lesser men, people whose self interest are habituated to contrivances. The missing information surrounds them, but in thier haste to fulfil thier subordinating scripts, thier momentum, will be seen in hindsight, as just more of the same hubris. As one whose privilege is to provide input, fear of the future is due to being only fully prepared for the self interest, lost too the past.

To: carranza2 who wrote (78990)	9/5/2011 10:24:00 PM
From: Hawkmoon	Read Replies (4) \| Respond to of 217713

Yes, there is a USD inflation but a gold-measured deflation. So does that mean that, back in the '90s, when gold prices were much lower, there was inflation in Gold? Strikes me that, when the price of a commodity far exceeds it's basic cost of production, that represents inflation. Like when someone builds a house, then sells it for 100% of its cost of manufacture, that represents real estate inflation. What's the cost of an Iphone? I understand the profit margin of Apple is nearly 60% on its iPhones: tech.fortune.cnn.com Not as good as a gold miner producing at $500/ounce, but still a nifty profit which adds value to the raw materials and labor necessary to produce it. So does that mean that the price of an iPhone is inflated over and above what it costs to produce it? Ultimately, inflation will not be measured in dollars versus gold, but in dollars versus the cost of staple items that human beings MUST HAVE to survive (food, energy, shelter.. etc). The price of Gold and Silver can rise infinitely without truly impacting the purchasing value of the USD and other currencies vis-a-vis these basic staples of survival. It's called a speculative bubble and we've seen it before. But unless the price of other non-discretionary commodities also rise, then it's not really inflation that will be noticed by the average consumer. Hawk