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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?


To: deeno who wrote (22853)4/7/2013 9:54:47 PM
From: grusumRead Replies (1) | Respond to of 24758
 
But how do dollars sitting around unused create value?

i don't know how the FED works, but i don't think reserves have value until they're lent out. lending them out at some interest rate, imbues the paper with money. in other words, money gives the currency value.

just supplying them does nothing, I don't think.

yes, that's what i think ahhaha meant when he said they don't have value until they get in someone's hands.



To: deeno who wrote (22853)4/8/2013 8:31:59 AM
From: ahhahaRespond to of 24758
 
does this mean that some prices rise while other prices fall? or does it mean that general prices rise as product value falls? or does it mean something else entirely?

All of the above.

actually that was the point I was trying to make with Ahhaha.

It's more complicated than you expressed.

So I said that dollars are deflating and everything else (lets say stuff) is inflating.

that's price inflation to me.

There are times when the opposite is true. How is that possible? Didn't I say it's a tautology? One has to distinguish between rising(falling) GPL and inflation(deflation).

So what I think he was asking and how Ahhaha answered may have no bearing on what either meant and on our conversation.

That doesn't matter. What matters is to have the interaction. When you do you are forced to think.