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To: muawiyah; AndyJackson; Sherman Logan; All

Let’s not forget that as the Jews and Moors were being ejected from Spain, most of their wealth was being stolen from them and kept in Spain. What would be the impact of fewer people and more property, goods, and money?


29 posted on 06/07/2011 10:42:55 PM PDT by gleeaikin
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To: gleeaikin
The point is that the rampant inflation in Spain post conquistodor gold and silver is not credibly under debate. The only question is whether someone has committed the post hoc ergo propter hoc fallacy, i.e. that all the conquistodor pillage caused the inflation.

But, in order to have a lot of inflation you have to have a lot of new money in circulation, and so where did the money come from? This article attempts to argue that the the new silver did not go into coinage in Spain, and so could not have caused monetary inflation. The sample size was far too small to reach the minor premise, and is irrelevant to the major premise. Coinage is only a small part of money. As we know, give a few gold bars to a banker and the value of the gold will be lent out 10 to 20 times over again.

New silver bars on deposit in treasuries could have displaced coins that were hoarded. It is easier to store, and why mint new coints when you already have coins minted that you are holding. There are all sorts of fallacies in this story.

30 posted on 06/08/2011 5:47:23 AM PDT by AndyJackson
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