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To: DannyTN
Over the long run, you can expect deflation with gold because the supply of gold does not grow as fast as the supply of goods in the economy. There are 5 billion oz of gold in the world. There are 6 billion people.

Wow, I've never heard anybody completely get basic supply and demand so bass ackwards like you just did. And so publicly.

I give you a FAIL. Epic.

168 posted on 12/12/2010 2:28:22 PM PST by InternetTuffGuy
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To: InternetTuffGuy
"Wow, I've never heard anybody completely get basic supply and demand so bass ackwards like you just did. And so publicly. "

Please explain what you think I got wrong.

Do you think the supply of gold is going to keep pace with the supply of goods? Not likely.

If your currency is gold, and you have a static amount of currency chasing more and more goods, what happens to the price of those goods? They deflate.

169 posted on 12/12/2010 4:22:54 PM PST by DannyTN
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