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Gold/Mining/Energy : ECHARTERS -- Ignore unavailable to you. Want to Upgrade?

To: E. Charters who wrote (3687)	11/21/2011 10:44:41 AM
From: grusum	Read Replies (1) \| Respond to of 3744

If the wealth exceeds demand, then it must die in value. wealth can never exceed demand, even if the only demand is for more wealth. would you ever say "na, don't give me another billion, i have a billion already"..? in other words, even if you already have everything you want, you'd still like to have more money. if greed is good, wealth is better. if all needs have been satisfied, then demand moves on to other things. It is created not by demand for production, but by phony credit. This applies to most government money, and much money made to create growth. making more currency doesn't create economic growth. All economists agree that the time value of money creates inflation. not all, many say that rising general price levels only happen from rising wages. When economies were based on gold and silver there was very little inflation for hundreds of years. i doubt if any economy is history has been based on the production of gold or silver. and economies are only based on production, not their choice of a currency. (that's what's so ridiculous about a 'gift economy') The Chinese had four disastrous economic collapses in their modern history and these were all based on paper money being printed far too fast. paper money will fail if it's not created in a legitimate way. all currencies fail if they are counterfeited to any large degree. if people don't trust a currency, they will no longer use it. The idea that there can be a saving economy which will preserve value is naive. it's the only way capitalism can work. nobody would grant a loan if they thought they would be paid back with a worthless currency. Their loan rate based on the money in their banks will create inflation. no it won't. you can't push on a string. you can offer loans and people can decide not to take them. that's what's happening now. people don't want the debt, or they don't qualify to take it out.