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To: SecAmndmt
No, because that’s what happens in a free market, Forrest.

We had sufficient gold to meet demand? You have any backup for your feeling about that?

A depression without a bankster bailout, but still WITH fractional reserve banking.

Fractional reserve banking under the gold standard? Shocking!

So when gold supply increases 1% a year and the economy grows 3% a year, does that cause any problems? Or would we be just fine even if the money supply didn't grow at all?

58 posted on 04/02/2009 7:57:01 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot

“So when gold supply increases 1% a year and the economy grows 3% a year, does that cause any problems? Or would we be just fine even if the money supply didn’t grow at all?”

The purchasing power of gold relative to other goods can change. If technology and efficiency improve, more goods can be produced at a lower real cost. And that is assuming that market forces do not encourage gold & silver exploration and mining to ramp up to meet demand.

You may have heard of this exploration and mining thing in regards to other valuable resources and commodities, such as oil.


59 posted on 04/02/2009 8:28:49 PM PDT by SecAmndmt (Arm yourselves!)
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