EARL NASH
Money Matters
>>>>>>>>>>> “ It’s news to YOU ! "
It is a fundamental principle in the value of things: the less there are, the more they are worth; conversely, the more there are, the less they are worth. Or, as Father Guido Sarducci summarized: "Supply and a' demand."
With baseball cards, the card sets
from 1950's, 1960's and 1970's are
worth much more than ones produced today; this is because (1) fewer cards
were
printed in those decades and (2) the number of cards was further
diminished by
kids who attached them with a clothes pins to their bikes, so they would
be
struck by the wheel spokes and "make a really cool noise."
"Supply and a' demand."
www.retroclipart.com/
The story goes that Winston
Churchill was an avid stamp collector;
when he discovered that he had ONE of TWO very valuable stamps, he
bought the
other one and, after lighting his cigar, he put the lit match to the
stamp he just
purchased; thus, he created a ONE OF A KIND value for his stamp. "Supply
and a' demand."
The same principal applies to those greenbacks in your wallet. The more $1 bills that are in circulation the less the value of each bill. Say, there are a MILLION $100 bills in circulation and then Ben Bernanke at the Fed creates another MILLION; by doubling the NUMBER of $100 bills, the Fed chair would reduce the value of each bill by 50%, or reduce the value of what a $100 bill will actually buy by half.
The goods and
services you could buy for >$1.00 <
in 1913 now cost > $21.00...<
BTW, do you still believe that you
could redeem your paper money
for anything real from the government? At
one time, before Nixon, you could bring your paper to Fort Knox and ask
to swap
it for bars of gold. But, Nixon, by
legal fiat, unlinked the gold from the paper.
So, your paper was no longer redeemable for gold, but only what
the
society agreed it would buy in goods or services.
At some point, if the Fed were to double or triple the number of $1 bills, it might become more cost effective to use them for toilet paper.
Here is how the Big Money Boyz
explain it:
"The dollar has now reached its
‘Havenstein moment’.
Will policymakers follow the prudent advice of Murray Rothbard and
‘tighten its
belt’? Or like Herr Havenstein, will Mr. Bernanke continue to
‘print’?
No need to ponder these two
alternatives. The Federal Reserve
must ‘print’, for one reason. Despite the noble goals assigned to it in
textbooks and offered in Congressional hearings, the Federal Reserve
exists for
only one reason – to make sure the federal government gets all the
dollars it
wants to spend, which consequently has put the dollar on a hyperinflationary
course."
