Re: Am I Having a Saturday Morning Stupid Moment?

Spehro Pefhany wrote:
On Fri, 20 Mar 2009 19:21:24 GMT, James Arthur
<bogusabdsqy@xxxxxxxxxxx> wrote:

Guy Macon wrote:
John Larkin wrote:
Joerg wrote:

John Larkin wrote:
No. It would violate conservation of energy.

Considering COE solves a lot of problems.

There are many people who don't believe in that kind of logic. Such as hedge fund managers, mortgage bankers, politicians (especially when it comes to budgets), etc.

But money is not conserved. The US Treasury just printed about a
trillion more, because they felt like it.

I believe that Joerg is referring to conservation of wealth, not conservation of currency. The US Treasury can print more currency,
but that just changes the currency/wealth ratio (AKA inflation).

There is no principle of conservation of wealth either (wealth can
be created or destroyed) but I think that the fact that printing more currency does not create more wealth would be one of the many examples of wealth being conserved.

Depends. If you've converted and stored your material wealth in
the form of currency, diluting the currency dilutes your wealth.

"The way to crush the bourgeoisie is to grind them
between the millstones of taxation and inflation."
-- Vladimir Ilyich Lenin

Inflation is an efficient way to spread the wealth, since it only
robs those who have it.

It also punishes those to hang onto cash and cash-like instruments,
which I believe to be a quite intentional part of the system (since
depreciation of currency is world-wide and crosses all political
boundaries).

Right--inflation also encourages people to spend. It's the perfect
stimulus package!

Cheers,
James Arthur
.

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