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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Barry who wrote (23678)	8/31/1998 5:37:00 PM
From: derek cao	Respond to of 70976

Re: in fact, in the long long long run, there will be no need for money. I am looking forward to that day. But I will not hold my breath while waiting.<g> Derek my motto: you got earn what you spend and you got spend what you earned in your lifetime(at least for now. It may change "in the long long long run"<g>).

To: Barry who wrote (23678)	8/31/1998 5:58:00 PM
From: Clarksterh	Respond to of 70976

Barry - Savings control or mitigate the growth in an economy. Excess CREDIT has created this overpowering supply situation, and great human technological achievements have created this abundance of supply relative to demand, as well. The credit available in this country, and presumably in others as well, is a function of the requirements for loan reserves, and thereby it is a function of savings. To take it to extremes, imagine that people saved 75% - do you really think that we could use that amount of capital efficiently, especially when leveraged by the reserve ratio? I doubt it in the extreme, and this is one of the main factors that, IMO, leads to excess capacity and massive asset inflation. There are probably/theoretically ways to control this, but sadly they aren't often used - for instance the FED does not have a mandate to change the interest rates based on asset inflation in addition to price inflation, nor do they change the reserve requirements based on asset inflation. Clark PS This is just a post in the interest of debate. Although I believe it, I have not seen a detailed economic analysis so I myself take it with a grain of salt. Comments?