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To: E. Charters who wrote (91231)	11/20/2011 10:39:26 AM
From: grusum	Read Replies (1) \| Respond to of 233785

This excess money will not hold its value for the simple reason that it is excess. Any times you have excess money to goods needed, the value of the money declines. can a man with 2 million dollars drink more beer than when he only had 1 million? 'excess' money as you call it, can be, and is saved. how does saved money cause the value of it to go down? in currency that's legitimately created, there's no such thing as 'excess'. it's only when currency is counterfeited that it becomes excess. currency is a medium of exchange, and it is also a record of labor. how can there be an excess of a record of something? the only way would be to have the record forged or falsified through a counterfeit. A surplus producing economy is inherently unstable. i don't think that's true. an economy that could only produce what's needed would be more unstable. what happens if through some natural event like a hurricane or earthquake, the economy couldn't produce what's needed? an economy with surpluses can more easily handle disruptions within it. Everybody does not need ten cars, so we don't produce them. nobody needed cars when henry ford started to produce them. say's law says that supply creates its own demand. The argument that cars cost more than that to make does not hold, as if we could produce that many they would not cost that much. true, and i would never make that argument. car prices would decline, but we don't know by how much. All the goods made by all the people have to equal the money available to buy the goods. there's no good reason they have to be equal. Where does the money come from to buy the goods? labor