Petri KajanderFrank Shostak

Inflation is the increase in the money supply

petri — Tue, 27 Mar 2007 16:39:19 +0000

How do you like it when someone is exchanging nothing for something?
Kings did it in the past and we are doing it at the moment in massive scale as well.

Money and Inflation: The Tendency to Deny Reality by Frank Shostak.

Legal counterfeiting

petri — Wed, 21 Mar 2007 08:38:36 +0000

Printing money does not increase the amount of products and services available in the market. It only increases the prices in the long term, in the short term it creates an illusion of increased wealth before the slow adjustment of prices catch up.

“The services money renders are conditioned by the height of its purchasing power. Nobody wants to have in his cash holding a definite number of pieces of money or a definite weight of money; he wants to keep a cash holding of a definite amount of purchasing power.”
Ludwig von Mises, Human Action, 3rd rev. ed. (Chicago: Contemporary Books, 1966) p 421.

Read Gary North’s The Official Counterfeiter.

Frank Shostak explains global liquidity and whether there is such a thing: The Yen and Monetary Liquidity

What is money?

petri — Fri, 19 Jan 2007 15:09:29 +0000

“A society is decaying as long as it focuses on money, which is the effect, and disrespects the cause, the producer. Money is the symbol and fruit of labour, and it should be appreciated as such. It represents the productive potential, but it is not the potential: in short, money is ‘dead’ in a sense that it is the earned potential converted into purchasing power. It is only the means and not the end. Therefore a virtue can create more money but no virtue can only store and loose it. Thus nothing is left when the money is gone if the potential (virtue) is gone.”

Money
How Does Money Acquire its Value?