I think added money supply DOES increase prosperity, but only because without it new businesses aren't created as fast. Doug will talk about internally-generated returns, and obviously that's huge, but given, for example, the changes in the housing sector since the 30s and 40s debt has to be the key to more economic growth.
I'm not suggesting that the pool of capital held by the rich should be increased, but I do think that the more a society is "leveraged", the more it can expand. And when you leverage, it's nice to have a place where cash gets parked so that leverage can't come back and bite you as inflation.
On 9/28/06, joanna <123hop at comcast.net> wrote:
>
> Last week, during an interview on CNBC, Dennis Gartman, editor of the
> highly regarded Gartman Letter, asserted that the storage currency of
> choice among drug traffickers, arms dealers, and the Russian Mafia had
> switched from $100 dollar US bills to ¬500 Euro notes. Gartman
> proclaimed the development to be bullish for the U.S. economy and
> bearish for the Euro zone. Say what?
>
> [snip]
>
> http://www.safehaven.com/article-5991.htm
>
>
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