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To: Mr. Jeeves
No, just it would just destroy certain large but unnatural economic structures which have evolved as a result of poor policy. And those are going to be destroyed soon enough by market forces, anyway - so it might be better if we actually took a hand in choosing how to destroy and replace them.

What unnatural economic structures?

Not following Paul's recommendations amounts to a conscious decision to keep the floating crap game going for a few more years - or decades - but it guarantees that at some point the central bankers are going to lose control of the whole mess and deliver the USA into a Weimar Germany-like economic situation. But we are so far down that path now that it's probably too late, anyway.

I am taking a shot in the dark here, but do you believe that we have an actual trade deficit? Not just on products but on the monetary side as well?

43 posted on 03/30/2007 7:28:32 AM PDT by LeGrande (Muslims, Jews and Christians all believe in the same God of Abraham.)
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To: LeGrande
What unnatural economic structures?

A lot of monetarists believe that a currency must be based on a tangible (natural) object that has a stable value, such as gold. The underlying flaw with this theory is that with things like gold, there is a finite supply, and shifts in market demand could/would create wild fluctuations with the value of said currency. You could actually see daily inflationary or deflationary changes in prices simply because of the change in purchasing power of said currency. We haven't seen much of this trend in the price recently (albeit, we are running a reverse correlation of the price of gold and inflation lately) but imagine what would happen if we go back to a gold based currency how the demand of the commodity would effect price. It would actually hurt gold investors too because the rise in gold would be directly reflected in the purchasing power of their dollar, and thus, would make an increase flat with their purchase.

57 posted on 03/30/2007 7:43:11 AM PDT by mnehring (McCain '08 -------------------------------------- just kidding...)
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