[12901] in Cypherpunks
RE: The American money capture
daemon@ATHENA.MIT.EDU (Wayne Q Jones)
Mon May 2 23:30:15 1994
Date: Mon, 2 May 1994 23:23:46 -0400 (EDT)
From: Wayne Q Jones <qjones@infi.net>
To: Blanc Weber <blancw@microsoft.com>
Cc: cypherpunks@toad.com
In-Reply-To: <9405021827.AA14132@netmail2.microsoft.com>
The money supply dwindled 1: by the accumulation of capital in the hands
of a few 2: the immediate fiscal policy of the govt which also sucked money
out of the economy....
On Mon, 2 May 1994, Blanc Weber wrote:
> From: Hal Finney & Eric Hughes
>
> >(Today, with our experiences of inflation in the 1970's and 1980's, it is hard
> >for us to appreciate the problems with deflation. But I think deflation was
> >much worse.
>
> The Great Depression was pretty clearly caused by deflation in the
> money supply. To quote Milton Friedman:
>
> "All told, from July 1929 to March 1933, the money stock in
> the United States fell by one-third [...]"
> Capitalism and Freedom, p. 50
> ....................................................
>
> Would it be too complex and lengthy an explanation to provide to say
> how the money supply is decided in the first place; that is, how an
> appropriate amount of it is calculated initially? Is this in reference
> to the gold or other backing which gives each dollar its monetary value?
>
> Blanc
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