Comments on: The Actual Money Supply http://dailyreckoning.com/the-actual-money-supply/ Covering the economy, global markets and world politics. Sun, 22 Nov 2009 09:36:11 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Bors http://dailyreckoning.com/the-actual-money-supply/#comment-12558 Bors Sun, 21 Jun 2009 16:11:48 +0000 http://dailyreckoning.com/?p=16599#comment-12558 "multi-variable locomotive." Good discription for runaway train. “multi-variable locomotive.” Good discription for runaway train.

]]> By: OldFordTruck http://dailyreckoning.com/the-actual-money-supply/#comment-12551 OldFordTruck Sun, 21 Jun 2009 14:45:34 +0000 http://dailyreckoning.com/?p=16599#comment-12551 This is "the" best most accurate article I have read concerning the inflation/deflation debate! When you have an equation with two moving variables it becomes more difficult to solve. Holding one variable constant, you can determine the solution if the other variable moves. If we were on a true gold standard (disregarding new gold mined and added to the mix), you would see prices fall due to market conditions of reduced demand. If market conditions (supply and demand) were constant and you inflate the money supply, you would see prices rise due to a lot more money chasing the same goods and services. I suspect we are feeling the effects of inflation but we can’t see the effects until the market conditions re-gain their balance and I am not betting the Fed (based on historical results) can stop the multi-variable locomotive. This is “the” best most accurate article I have read concerning the inflation/deflation debate! When you have an equation with two moving variables it becomes more difficult to solve. Holding one variable constant, you can determine the solution if the other variable moves. If we were on a true gold standard (disregarding new gold mined and added to the mix), you would see prices fall due to market conditions of reduced demand. If market conditions (supply and demand) were constant and you inflate the money supply, you would see prices rise due to a lot more money chasing the same goods and services. I suspect we are feeling the effects of inflation but we can’t see the effects until the market conditions re-gain their balance and I am not betting the Fed (based on historical results) can stop the multi-variable locomotive.

]]> By: Jaxn44 http://dailyreckoning.com/the-actual-money-supply/#comment-12431 Jaxn44 Sat, 20 Jun 2009 12:06:20 +0000 http://dailyreckoning.com/?p=16599#comment-12431 Silly. The first thing you need to know about money....is that "he holds the gold makes the rules". Being the largest debtor in history means that our creditors "make the rules". THEY DETERMINE THE PRICE OF THE DOLLAR AND THUS HOW MANY ARE REQUIRED FOR GOLD. To even compare gold in a currency with only a few months to live is pretty funny. If you're concerned about exchanging gold for dollars in the future than you don't get it. The dollar is done...gold will be implemented in the new SDR's at the IMF and the dollar will be reputiated immediately at the expense of this quasi-gold-back currency. Not decline 20%....but to ZERO. Silly. The first thing you need to know about money….is that “he holds the gold makes the rules”. Being the largest debtor in history means that our creditors “make the rules”. THEY DETERMINE THE PRICE OF THE DOLLAR AND THUS HOW MANY ARE REQUIRED FOR GOLD. To even compare gold in a currency with only a few months to live is pretty funny. If you’re concerned about exchanging gold for dollars in the future than you don’t get it. The dollar is done…gold will be implemented in the new SDR’s at the IMF and the dollar will be reputiated immediately at the expense of this quasi-gold-back currency. Not decline 20%….but to ZERO.

]]> By: About | blog of informations http://dailyreckoning.com/the-actual-money-supply/#comment-12412 About | blog of informations Sat, 20 Jun 2009 06:57:20 +0000 http://dailyreckoning.com/?p=16599#comment-12412 [...] View post: The Actual Money Supply [...] [...] View post: The Actual Money Supply [...]

]]> By: ed. smith http://dailyreckoning.com/the-actual-money-supply/#comment-12392 ed. smith Sat, 20 Jun 2009 02:58:01 +0000 http://dailyreckoning.com/?p=16599#comment-12392 Good discussions, but how to <a href="http://bestgptr.blogspot.com/" rel="nofollow">make more money</a> will ever remain the thoughts of every living human. Everyday. Good discussions, but how to make more money will ever remain the thoughts of every living human. Everyday.

]]> By: tony bonn http://dailyreckoning.com/the-actual-money-supply/#comment-12384 tony bonn Sat, 20 Jun 2009 00:45:56 +0000 http://dailyreckoning.com/?p=16599#comment-12384 possibly one of the best inflation articles for at least its thoughtfulness....however if money is difficult to define - about which i disagree - price inflation is even more difficult to define - or more preceisely to measure....in fact it is IMPOSSIBLE to measure price inflation....and it is equally impossible to measure the relationship between monetary inflation and price inflation.....the reason for the impossibilities is that the goods and services purchased with said money are not constant.....it will never do to talk about hedonics and a host of other factors attempting to adjust for product change....furthermore, discussion of inflation is crippled beyond repair with the notion of measuring it in dollar prices.....the USD IS NOT MONEY - IT IS ONLY A MEDIUM OF EXCHANGE. 99.9% of most folks will not get that or the implications thereof..... it is also impossible to isolate the monetary contribution to price changes. it would be interesting to tell your readers what exactly is in ams..... the other factor making impossible talk about the relationship between dollar inflation and price inflation is the presence of credit which serves as a proxy for money or buying power. at least your observation of continued inflationary forces corresponds closely with mine. it is good to see others struggling with the notions of monetary inflation, price inflation, buying power, and currency debasement however we are still in the dark ages of having a good model to describe these foreces and their interactions. linear mathematics is inadequate just as the quantity theory of money is voodoo economics.... possibly one of the best inflation articles for at least its thoughtfulness….however if money is difficult to define – about which i disagree – price inflation is even more difficult to define – or more preceisely to measure….in fact it is IMPOSSIBLE to measure price inflation….and it is equally impossible to measure the relationship between monetary inflation and price inflation…..the reason for the impossibilities is that the goods and services purchased with said money are not constant…..it will never do to talk about hedonics and a host of other factors attempting to adjust for product change….furthermore, discussion of inflation is crippled beyond repair with the notion of measuring it in dollar prices…..the USD IS NOT MONEY – IT IS ONLY A MEDIUM OF EXCHANGE. 99.9% of most folks will not get that or the implications thereof…..

it is also impossible to isolate the monetary contribution to price changes.

it would be interesting to tell your readers what exactly is in ams…..

the other factor making impossible talk about the relationship between dollar inflation and price inflation is the presence of credit which serves as a proxy for money or buying power.

at least your observation of continued inflationary forces corresponds closely with mine.

it is good to see others struggling with the notions of monetary inflation, price inflation, buying power, and currency debasement however we are still in the dark ages of having a good model to describe these foreces and their interactions. linear mathematics is inadequate just as the quantity theory of money is voodoo economics….

]]> By: Dan Conine http://dailyreckoning.com/the-actual-money-supply/#comment-12380 Dan Conine Sat, 20 Jun 2009 00:21:36 +0000 http://dailyreckoning.com/?p=16599#comment-12380 The Fed tries to define the value of money, and others try to define the value of gold. The real reason everyone is having such a hard time is because they haven't defined what 'value' is first. Value is based upon 'future usefulness to people'. In other words, you not only have to have some commodity that is useful in itself, but you have to have people that are able to make use of it. If everyone has plenty of gold, but no food to eat, then the gold is worthless. If there is plenty of food, but it makes us sick.....(cue Monsanto tapes). Money in the present has value because it is useful in the future for exchange. If there isn't a future infrastructure (no cheap oil to run the System of systems), then it doesn't matter what you make money out of, it will still end up being worthless because there won't be anyone who needs it (those who are still alive will have established barter systems locally). We might as well institute a sales tax of 50% or more right now to stop people from buying stuff they don't need and kill the thrashing economy before it kills the planet. The Fed tries to define the value of money, and others try to define the value of gold. The real reason everyone is having such a hard time is because they haven’t defined what ‘value’ is first. Value is based upon ‘future usefulness to people’. In other words, you not only have to have some commodity that is useful in itself, but you have to have people that are able to make use of it. If everyone has plenty of gold, but no food to eat, then the gold is worthless. If there is plenty of food, but it makes us sick…..(cue Monsanto tapes).
Money in the present has value because it is useful in the future for exchange. If there isn’t a future infrastructure (no cheap oil to run the System of systems), then it doesn’t matter what you make money out of, it will still end up being worthless because there won’t be anyone who needs it (those who are still alive will have established barter systems locally).
We might as well institute a sales tax of 50% or more right now to stop people from buying stuff they don’t need and kill the thrashing economy before it kills the planet.

]]> By: StingingNettle http://dailyreckoning.com/the-actual-money-supply/#comment-12368 StingingNettle Fri, 19 Jun 2009 22:35:45 +0000 http://dailyreckoning.com/?p=16599#comment-12368 The fair value doesn't seem to price in any possible currency events, or other shocks to the system. Lets say one has 0 gold, isn't it risky waiting for gold to hit 800 in this environment? Wouldn't it be better to at least buy some now? Very good read by the way. Thank you. The fair value doesn’t seem to price in any possible currency events, or other shocks to the system. Lets say one has 0 gold, isn’t it risky waiting for gold to hit 800 in this environment? Wouldn’t it be better to at least buy some now? Very good read by the way. Thank you.

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