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Re: President Obama's economic legacy has just been cemented 

By: DGpeddler in POPE IV | Recommend this post (1)
Sun, 08 Jan 17 9:15 PM | 59 view(s)
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Msg. 17684 of 47202
(This msg. is a reply to 17652 by monkeytrots)

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I drive a one ton dually. I bought it
in 1995 for $22,000. If I replaced it
today, it would cost me over $50,000.
DOES THAT SOUND LIKE 'price remaining
the same'?


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The above is a reply to the following message:
Re: President Obama's economic legacy has just been cemented
By: monkeytrots
in POPE IV
Sun, 08 Jan 17 5:13 AM
Msg. 17652 of 47202

De - excellent post, with two exceptions.

Nixon DID have a choice. He could have changed the exchange rate (still a massive devaluation of currency) by going to a floating exchange rate equivalent to the prevailing market price of gold.

Second - YES - productivity gains against currency inflation DO result in prices remaining the same. The problem with this argument is obvious. WITHOUT inflation, Productivity gains would result in DECREASING PRICES. Ergo: Inflation HAS increased, devaluing the value of currency, and price inflation HAS actually occurred, but it is obscured by the
'price remaining the same'.

Mises was 100% correct in his analysis.


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