Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Pete Young who wrote (18436)	9/11/1998 1:09:00 AM
From: E. Charters	Respond to of 116896

There is relation between BS and the economist's standing in the public eye. It is direct. Galbraith was no match for Keynes. Of you want a quintessential explanation of how to run an economy, Maynard Keynes is your man. It is a distortion of Keynes that gives Keynes the socialist free spending hue. MK always advocated fiscal conservatism except where the countries economy was in a really bad way as at the bottom of a depression. Then the dollar machine needs cranking. Of course by then most countries are broke and free spending will cause hyperinflation as it did in Germany. Where the Yankee money comes from today is Japan. What we should be looking for is when the nips start to tuck. Bye bye Tbill, hello gold. ============================ Gold is not in step with commodities but out of step. The explanation Roosevelt gave was more honest. He pegged gold in order to allow more purchasing power to the dollar. Gold was on the rise. R was concerned. Nobody corrals a runaway horse because they want to look at it. they either want to ride it or they are afraid of it. Gold in a devaluation will always rise. This is because of its monetary nature. Commodities chase scarcer gold. Not so wheat. Oil will always rise with gold. This was because the Arabs insisted on Gold payment for oil since 1920. The trouble was the dollar was scarce. Commodities were driving its price up. The idea was to make more dollars and drive their price down without it being apparent. Hence the tie to gold. If you drive the dollar price down commodities apear to rise in price and business takes off. But people start to demand money..hence the unionism of the 30's. Business has more so it will pay more. Where you avoided increasing the money supply much is the yankee gold, oil, and dollars now printing, bought more goods overseas with the gold backed dollar which now looked cheaper domestically as commodities bought more of them. ($) So for years the US had a net trade gain and its inflation was not serious. If you start printing more dollars they have to get through to the worker or the whole exercise is useless so salaries have to rise. You call this economic growth. It can also be called living on borrowed time. =================================