how can a hard currency money supply keep up with population growth and demand?

[ClaytonB]

I’m getting an argument from a self-professed Friedman devotee that a central bank is needed to constantly expand the money supply or the growth of demand will outpace the supply of money. That with a hard money, or gold standard, we would be in danger of consumer demand outrunning the supply of money.

Any good refutations or thoughts on this? I know this is pretty basic, but I’m still working on grasping the ABCt.

Absolute nonsense. The monetary commodity begins as just another commodity (per Mises’s regression theorem). It is possible for multiple monies to co-circulate or for money to be different from region to region. Throughout most of Western history, gold and silver have co-circulated. If the gold supply becomes so restricted by comparison to the silver supply and is unable to keep up with the demand for hand-to-hand coinage at realistic valuations, then people will switch down to silver until gold supply catches up or population goes down or both or maybe the switch would be permanent. Yes, gold holders would lose some money in such a change-over as gold would fall to its exclusively non-monetary commodity value but that uncertainty is present in every part of life, there is nothing government can do to change it, not through fiat or any other way. It would be up to individuals to choose their own portfolios in such a way as to protect themselves against such events.

The opposite could happen, as well. For example, if some new technology permitted cost-effective gold harvesting from the ocean - where the vast majority of the gold in the world exists - there could be a new gold rush. In such a case, people might want to switch out of gold into platinum or silver.

Clayton -

[Hippledipple]

The question is what came first the dollar or the gold. And why arent we still mining for gold in the US. If you have ten people at a monopoly game, and each person gets 500.00 dollars and you start the game, and then you add 5000 more people, if you don’t add currency to the game, you will create havoc in the game. If you lower the prices of goods instead of adding currency, the original people will get angry. You have to add currency inorder to keep the game inorder to keep up with population growth. The deficit we have is nothing but a figure that states what it has taken to keep the game in a orderly fashion. You can’t add to much currency but you need to add currency and control prices of goods. And the people and government can control the prices of gold. If you add to much currency, it will devalue, unless you keep prices at the same amount thru governmental means. Now heres the trick, as we add things to our lives, such as computers and invent things out of air, it will cause a demand and if you don’t have enough currency for the demand of that new invention, that invention will not be able to be produced, because no one will be able to buy it, no currency available. And when the population grows, it puts a strap on availability of cash, unless you print more money and introduce it into the economy, reasonably. This is the question you have to ask yourself, where has all the cash come from, since 1800, to acommodate 350 million people…??? It has had to be printed to keep up with the economy. And the fight in washington DC is who is going to get that money…thats all its about, because they all know, money has to be printed as long as the game has to continue, as you keep adding people, and introducing trade agreements into the situation. If you look at the history of the population growth and the amount of national debt, you will see they corrolate. Its a simply monopoly game, and the ones that know this are at the top, working their best to keep it in their control. Now, this is the answer to Carbon dioxide levels, and how to control the levels inorder for us all not to suffocate. The more carbon dioxide levels the eviler this place is going to get. Hippledipple is on twitter, trying to get free from FAcebook, along with RU, they are on RU777 page, and have the answers to the greastest questions on earth, but are entrapped, help free them…feel free to copy and pass this along…

RU

[Snowflake]

@**Hippledipple

**And why arent we still mining for gold in the US.

We are.

@**Hippledipple

**If you have ten people at a monopoly game, and each person gets 500.00 dollars and you start the game, and then you add 5000 more people, if you don’t add currency to the game, you will create havoc in the game.

No. The monopoly money only has value for its ability to purchase property and pay rent. Creating new money or redistributing it is akin to saying we ought to redistribute capital.

The game is constrained so that only monopoly money issued by the monopoly bank can be used to exchange goods and services. Prices are also fixed. It should be glaringly obvious how this is not a free market setup.

@**Hippledipple

**If you lower the prices of goods instead of adding currency, the original people will get angry. You have to add currency inorder to keep the game inorder to keep up with population growth.

This will piss off the original people too because their real cash holdings have been depreciated.

@**Hippledipple

**Now heres the trick, as we add things to our lives, such as computers and invent things out of air, it will cause a demand and if you don’t have enough currency for the demand of that new invention, that invention will not be able to be produced,

Falling prices…

@**Hippledipple

**And when the population grows, it puts a strap on availability of cash, unless you print more money and introduce it into the economy, reasonably.

Money is infinitely divisible. There is no shortage of specie.

@**Hippledipple

**This is the question you have to ask yourself, where has all the cash come from, since 1800, to acommodate 350 million people…??? It has had to be printed to keep up with the economy. And the fight in washington DC is who is going to get that money…thats all its about, because they all know, money has to be printed as long as the game has to continue, as you keep adding people, and introducing trade agreements into the situation.

Our wise and benevolent central planners are neither. What about periods of deflation in US history with positive real GDP growth? What about periods of high inflation and low economic output?

@**Hippledipple

**If you look at the history of the population growth and the amount of national debt, you will see they corrolate.

It also correlates with global warming, the number of rock and roll albums, and how tall I am.

@**Hippledipple

**RU

RU economically literate?

[Hippledipple]

You can cut the cheese any way you want it, but when I am right, I am right. Where has all the money come from since 1800, you havent answered my question yet. Your answers are an attempt to protect your own interest, that’s very clear. Don’t you think a government contract to a military dealer is not a redistribution of wealth?, come on man, find some honestly in that frame work you got going on. Terms throw around like capitalist, facism, liberalism, " redistribution of wealth", is an attempt to conquear and divide to protect the people at the top who got their eye on the ball and the cash that has to be printed as the population grows, its very simple. The game of monopoly was invented to only buy property as you say, but the game was invented by someone, and it is the same thing in life, there where men who invented this game, I am showing you how the game works, whether or not, you want to agree to it. You see I got my eye on the ball, but not to protect my own interests. Money can be divisible, or you can print the money, either way, you are increasing currency in the market by doing that. You want to solve problems right now, then cut the prices off everything in half, but by doing that, you do the same thing as printing money. You can’t have a free market, without government control. That is evident, in the two things in this world, that being good and evil. I would not borrow another dime from any country, that is a simple shell game to keep the public unaware of the fact that you have to print money if the population grows, or you have to tax the individuals at the top, when they funnel all the money in their bank accounts, becuase the game will have to end, just like in the game of monopoly, no different, except, in life you can buy other items.

But to keep it simple, I can go on and on, and everyone can get confused. Its simple, if the population grows, you have to print money, or divide money, either one is a control of the markets, there are no such thing as free markets without some kind of control. The only question is, are you in control, and how willing are you to fight to get in control.

[Hippledipple]

Now let me say one last thing, the whole global warming thing, is not about global warming, its about the increase of carbon dioxide. And the understanding of what I just explained is the only answer we have to not suffocating to death, from the increase of carbon dioxide. You can’t put a finger on global warming, but you can measure the increase of carbon dioxide and understand at what levels the body can no longer function healthy at, and we are reaching that point. You see, if we do not put all our money, and efforts towards reducing or eliminating carbon dioxide, there will be no game to play anymore. I put twenty bucks, that Yucca mountain is a safe haven for when that happens, and you do not have enough gold for them to open the door for you. Its time to get to the truth of the game, in order to save ourselves, from the carbon dioxide levels, not from global warming, but from the carbond dioxide levels. But your going to have to print the money, that the economy lacks, due to the true understanding of whats going on at the top of the human financial food chain. You set aside your protectionism, of your personal interests, I just may save your life.

[meambobbo]

Falling prices are good.

If prices fell so far as to make physical money exchange difficult, the market would adopt by choosing another commodity as money or resorting to innovative money substitutes.

[Snowflake]

@**Hippledipple

**You can cut the cheese any way you want it, but when I am right, I am right

Not the way I cut cheese.

@**Hippledipple

**Where has all the money come from since 1800, you havent answered my question yet.

Fiat credit expansion. This is not controversial.

@**Hippledipple

**Don’t you think a government contract to a military dealer is not a redistribution of wealth?

Indeed it is. As an anarchist, I oppose all redistributions of wealth.

@**Hippledipple

**come on man, find some honestly in that frame work you got going on.

Use correct grammar.

@**Hippledipple

**Terms throw around like capitalist, facism, liberalism, " redistribution of wealth", is an attempt to conquear and divide to protect the people at the top who got their eye on the ball

I actually think most wealth redistro is from poor to rich, but I oppose both because you shouldn’t attack innocent people.

@**Hippledipple

**and the cash that has to be printed as the population grows, its very simple.

Non sequitur.

@**Hippledipple

**I am showing you how the game works, whether or not, you want to agree to it.

But in real life, property owners can reduce the prices of goods and services. In monopoly, prices are fixed and static throughout the game.

@**Hippledipple

**You see I got my eye on the ball, but not to protect my own interests.

Is everything a game to you?

@**Hippledipple

**Money can be divisible, or you can print the money, either way, you are increasing currency in the market by doing that.

I have a 10 dollar bill. Now I have ten 1 dollar bills. The money supply is the same.

@**Hippledipple

**then cut the prices off everything in half, but by doing that, you do the same thing as printing money

mmmno. And I don’t want prices to be cut in half by some government edict. Prices fall depending on the relative supply/demand for commodities/money.

@**Hippledipple

**You can’t have a free market, without government control. That is evident, in the two things in this world, that being good and evil.

Baseless assertion.

@**Hippledipple

**But to keep it simple, I can go on and on, and everyone can get confused.

People often get confused when you speak huh.

@**Hippledipple

**Its simple, if the population grows, you have to print money,

Nah, you can let prices fall.

@**Hippledipple

**or divide money

Which is what I’m saying will happen, and what you seem to be confused about.

@**Hippledipple

**either one is a control of the markets,

You don’t need to force the market to change its prices.

@**Hippledipple

**there are no such thing as free markets without some kind of control. The only question is, are you in control, and how willing are you to fight to get in control.

The only question is, stop attacking innocent people and also you can’t centrally plan an economy they’re too complicated and only prices resulting from free transactions can rationally allocate scarce resources.

[Hippledipple]

this got lost in the last post, when I say mining for gold, I don’t recall seeing anywhere that the federal government is mining for gold inorder to back the currency. Here’s a question for all you gold lovers, when the federal government required all gold to be sold to the government that was mined, where did the government get the money to buy the gold? Was it, that we got gold, now we have to print money, or was it, we have currency, inorder to buy gold, to back the currency we just printed?. There is not enough gold in the world to back the amount of currency needed to supply the worlds cash supply. Gold was an attempt to give value to the dollar, but the value of the dollar has always been trully on the backs of the soldiers of the U.S. and other countries that value the thought of trying to keep the world peaceful.

But remember, keep it simple, if you got a game going on, with a certain amount of cash, and you increase the population, inorder for the game to not get out of control, you are going to have to print more cash to account for the population growth. Or tax, the person at the top, who was smarter than the rest at funneling the money in the game into their bank account or under their mattress, so that the game doesn’t end. You could cut all prices, as the population grows, but who is going to want to cut their prices of products, isn’t the selfish needs of the game to funnel more money into your bank account.

We can do anything with this game, such as end taxation, and print the money that is needed to support the government, every year. Control prices so that there is no inflation. Open up trade aggreements with every country out their as long as their in the game.. the only restrictions of this game is the restrictions that are put on by the people at the top, who want to control their own interests. We live on a rock floating in the universe, no one, came to our planet and said, this is the way it has to be. It is off our own doing. We can create the game anyway we want it. But in anything, you are going to have to have some type of control, and what we have to control is carbon dioxide levels right now, and this is the only way we are going to be able to do it…

RU

[Giant_Joe]

But remember, keep it simple, if you got a game going on, with a certain amount of cash, and you increase the population, inorder for the game to not get out of control, you are going to have to print more cash to account for the population growth.

WHY?

You keep asserting this, but you fail to realize that prices can adjust to the amount of money in the economy. You have no reason as to how this happens or why this is the case.

In fact, I will go so far as to say that the money supply doesn’t need to expand to keep up with population growth in order for the economy to have steady, stable growth. Reason: the price of money will increase/the price of goods will decrease.

[Hippledipple]

(The only question is, stop attacking innocent people and also you can’t centrally plan an economy they’re too complicated and only prices resulting from free transactions can rationally allocate scarce resources.)

stop Attacking innocent people? I just got assaulted on my grammer… when your writing a novel of the truth, in ten minutes somethings go by the wayside. bad grammer is my watermark.

Just keep your eye on the carbon dioxide levels, and you will have no choice but to print the money.

[Hippledipple]

You can’t have a free market, without government control. That is evident, in the two things in this world, that being good and evil.

Baseless assertion.

Baseless?, come on man, get some “honestly” in that frame work. In everything, you have to take into account of human behavior, that is part of the game.

Time to go to dinner, where’s that coupon?

Go buy a carbon dioxide detector with a ppm readout, and watch it go up, find the levels of where carbon dioxide levels are hazardous, and then calculate how much time you got left maybe thru a graph, and as it goes up with each number, your going to want to start printing money, control inflation, and bring the carbon dioxide levels back to levels we will survive in, by using that printed money to utilize techniques to accomplish the task at hand. or your going to be a mouse in a enclosed box, trying to get the one last oxygen to nibble on, as the mouse behind you is crawling up your backside…

[meambobbo]

unsubscribe

[Evil_Result]

With 6 posts i will assume that perhaps you where looking for a forum of economics in which to test your abilities and faculties with others of similar interests, but it seems you have stepped into the lions den.

[Hard_Rain]

Go buy a carbon dioxide detector with a ppm readout

What is with your obsession with carbon dioxide? It’s a trace gas in the atmosphere. It isn’t harming any one, it’s sustaining life on this planet?

[auctionguy10]

Quote by Hippledipple:"We can do anything with this game, such as end taxation, and print the money that is needed to support the government, every year. Control prices so that there is no inflation. "

Have you ever looked at the results when countries have implemented price controls? Its a complete disaster.

[ClaytonB]

if you got a game going on,

Human action is not a game. Humans are not game pieces, the delusions of drooling mad, sociopathic central planning proponents aside.

We can do anything with this game

That is utterly false. Read Human Action, read Man, Economy and State. This is the wrong forum to try to peddle that garbage.

Clayton -

[Bostwick]

How do you demand goods? With money. How do you demand money? With goods.

If the number of goods increases there does not need to be an increase in supply of money, all that need happen is the exchange rate between the two change. Like wise, an increase in the supply of money will not cause an increase in the supply of goods.

In fact, increasing the supply of money to match the supply of goods is a disservice as it disguises the true economic reality, causing economic dislocations that eventually lead to a bust.

[Bostwick]

With 6 posts i will assume that perhaps you where looking for a forum of economics in which to test your abilities and faculties with others of similar interests, but it seems you have stepped into the lions den.

More likely he was on the internet and felt the need to spout some his personal political philosophy to anyone who would listen.

[Jackson]

You can cut the cheese any way you want it, but when I am right, I am right.

yes. and when you’re wrong, you’re wrong.

[Hippledipple]

don’t worry, these ideas will eventually be removed, but now that you have them, cherish them, because it is the truth:)