> I cant find a way that lets investors get a return on
> their savings, unless the return is greater than the inflation rate.
> Which seems like it'd be unlikley in most cases.

If you observe a capital market which really is a "market",
say venture-capital funds, as opposed to a casino like the
Fed & it's spawn, expected rate-of-return is around 30% -
Often much higher if risk is substantial. Return on your
savings account is about a tenth that, which should give
you a glimpse of the cost of the Fed indemnifying you
against the avarice & incompetence of it's banks.

> It feels more like a tax on capital than a tax on income/work. You are
> going to be devaluing bridges as well as the money people pay the toll with.

You're missing the point - The value of money is the aggregate value
of property, goods, & services. If the supply of money increases faster
than the supply of property, goods, & services then the value of money
goes down. IOW, it's a tax on everything - BUT - The guy who owns the
soup factory can raise the price of soup a lot faster than soup drinkers
can raise their wages, so while many suffer, some gain - Hence the
otherwise inscrutable support for the yahoos currently running things
in the US.

Put differently, increasing the supply of money chasing property, goods,
& services bids up prices,  AKA monetary Inflation.

Jack






On 3/15/08, Jake Anderson <jake@vapourforge.com> wrote:
> Jake Anderson wrote:
> > Apptech wrote:
> >
> >>>> It's well known that when governments just 'print money'
> >>>> arbitrarily that the system falls apart, but I don't know
> >>>> how the cost gets distributed when it is done in a
> >>>> controlled manner.
> >>>>
> >>>>
> >>
> >>
> >>> I think the word you're looking for is "Zimbabwe"
> >>>
> >>>
> >> No, that's
> >>
> >>     > just 'print money' arbitrarily
> >>
> >> I said
> >>
> >>     > when it is done in a controlled manner.
> >>
> >> It would actually work.
> >> What is not clear to me is how the resultant costs would be
> >> distributed across the economy. The original recipients of
> >> the "fake" money are not obviously disadvantaged as the
> >> money is just as real. If anything they benefit from the
> >> business, as they would with any government purchase. But,
> >> how does the cost then transfer across the society as a
> >> whole?
> >>
> >> I'm serious about the question. The answer is far from
> >> obvious to me.
> >>
> >>
> >>         Russell
> >>
> >>
> > I feel its a pretty fair tax with few loopholes that I can see. Rather
> > than taking money out of peoples pockets you make the money in their
> > pocket worth less. Provided you keep it in check (10% or so of the GNP
> > of your society or something is allowed to be printed each year) the
> > benefits would be immense. You can dump tax officers, tax collectors,
> > most accountants (you still need to keep track of what's going on but
> > that's for your benefit not the governments), taxation departments a
> > whole bevy of paper pushers can become engineers ;->. Small business
> > would sing your praises, your free to do pretty much anything you want
> > financially because you can't dodge the dollars in your pocket being
> > worth slightly less at the end of the year.
> >
> > Perhaps institutionalise a cyclic "reset" of the value of money every
> > few (tens of?) years such that you don't have $50million notes etc.
> >
> > I'm unsure of the "border" interactions though, how investors go with
> > putting money in and taking it out of your economy and vice versa
> > although i suspect the money market should make most of those
> > corrections for you.
> >
> >
> Found some flaws. If I give you $1000 in cash now, you are going to want
> to spend it straight away because in a week its going to be worth less
> in terms of goods. I cant find a way that lets investors get a return on
> their savings, unless the return is greater than the inflation rate.
> Which seems like it'd be unlikley in most cases.
>
> It feels more like a tax on capital than a tax on income/work. You are
> going to be devaluing bridges as well as the money people pay the toll with.
>
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