Money Supply

Discussion in 'Economics' started by ShoeshineBoy, Dec 22, 2003.

  1. Come on, inflation is necessary for letting debtors off the hook, promoting consumers to buy stuff now instead of later, and to be able to raise wages every year, incent investing etc.
     
    #31     Dec 25, 2003
  2. In the long term it's productivity growth which ensures growing economy imo.
     
    #32     Dec 25, 2003
  3. You don't see inflation :D ? Inflation is in the Stock market hahaha !

    Thanks this has inspired me today's quote:

    A new inspirational quote everyday. For Friday December 26th:
    "THE MISSISSIPPI SCHEME
    Some in clandestine companies combine;
    Erect new stocks to trade beyond the line;
    With air and empty names beguile the town,
    And raise new credits first, then cry 'em down;
    Divide the empty nothing into shares,
    And set the crowd together by the ears."
    -- Memoirs of Extraordinary Popular Delusions - Charles MacKay

    ftp://sunsite.unc.edu/pub/docs/books/gutenberg/etext96/ppdel10.txt

     
    #33     Dec 26, 2003

  4. Of course they are people today in Congress that raises alarm but they are shut down as the King shut them down at that time:

    "The Parliament saw at once the impolicy and danger of such a
    system, and made repeated remonstrances to the Regent. The latter
    refused to entertain their petitions, when the Parliament, by a bold,
    and very unusual stretch of authority, commanded that no money should
    be received in payment but that of the old standard. The Regent
    summoned a lit de justice, and annulled the decree. The Parliament
    resisted, and issued another. Again the Regent exercised his
    privilege, and annulled it, till the Parliament, stung to fiercer
    opposition, passed another decree, dated August 12th, 1718, by which
    they forbade the bank of Law to have any concern, either direct or
    indirect, in the administration of the revenue; and prohibited all
    foreigners, under heavy penalties, from interfering, either in their
    own names, or in that of others, in the management of the finances of
    the state. The Parliament considered Law to be the author of all the
    evil, and some of the counsellors, in the virulence of their enmity,
    proposed that he should be brought to trial, and, if found guilty, be
    hung at the gates of the Palais de Justice.

    Law, in great alarm, fled to the Palais Royal, and threw himself
    on the protection of the Regent, praying that measures might be taken
    to reduce the Parliament to obedience. The Regent had nothing so much
    at heart, both on that account and because of the disputes that had
    arisen relative to the legitimation of the Duke of Maine and the Count
    of Thoulouse, the sons of the late King. The Parliament was ultimately
    overawed by the arrest of their president and two of the counsellors,
    who were sent to distant prisons."
     
    #34     Dec 26, 2003
  5. #35     Dec 26, 2003
  6. I should have been more clear: I meant "real inflation", that is inflation that exceeds productivity growth. Real inflation is what has the potential to put the brakes on the economy...
     
    #37     Dec 26, 2003
  7. Agree
     
    #38     Dec 26, 2003
  8. Why would someone who believes in a gold standard want inflation? Are you saying he wants our non-gold-standard currency to melt down so that then we must have a gold standard?
     
    #39     Dec 26, 2003
  9. fantastic : people believe in gov "stats" :D
    "Santa Claus rally and more new highs!
    Dec 24 2003 (from today's Hotline)
    Commerce Department data confirmed the incredible 8.2% 3Q GDP growth, providing the Christmas cheer to move NYSE indices to further highs. Consumer spending and sentiment both were announced and very positive, giving added confirmation to investor optimism. Year end often sees a market rally, as bonuses and dividends are invested, but after the strong ...[Subscribe to read more] "

    "INCREDIBLE" to say the least. It's much easier for Gov today to use "stats" than in the old days during the Mississipi scheme :D

    "The value of shares in the Louisiana, or Mississippi stock, had
    fallen very rapidly, and few indeed were found to believe the tales
    that had once been told of the immense wealth of that region. A last
    effort was therefore tried to restore the public confidence in the
    Mississippi project. For this purpose, a general conscription of all
    the poor wretches in Paris was made by order of government. Upwards of
    six thousand of the very refuse of the population were impressed, as
    if in time of war, and were provided with clothes and tools to be
    embarked for New Orleans, to work in the gold mines alleged to abound
    there. They were paraded day after day through the streets with their
    pikes and shovels, and then sent off in small detachments to the
    out-ports to be shipped for America. Two-thirds of them never reached
    their destination, but dispersed themselves over the country, sold
    their tools for what they could get, and returned to their old course
    of life. In less than three weeks afterwards, one-half of them were to
    be found again in Paris. The manoeuvre, however, caused a trifling
    advance in Mississippi stock. Many persons of superabundant
    gullibility believed that operations had begun in earnest in the new
    Golconda, and that gold and silver ingots would again be found in
    France."
     
    #40     Dec 26, 2003