No bubble is forever.
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| Author | Content |
|---|---|
| Bob_Robertson Jan 23, 2009 12:28 PM EDT |
I shouldn't be surprised that people seem to act surprised when bubbles stop inflating. 1929, house prices, Microsoft stock, now Google: "Oh Woe! Things Don't Go Up Forever!" Don't worry. With the US dollar heading for Zimbabwe-land, Google will be worth billions and billions again. Billions, nay trillions, of tiny, worthless dollars. |
| DrDubious Jan 23, 2009 12:39 PM EDT |
I blame the way Google has sidelined Linux with all of it's new "Windows-only" projects for its slowing growth. (This may not actually be the cause, but I blame it anyway....) |
| dinotrac Jan 23, 2009 1:44 PM EDT |
Hey Bob - Have you been watching the dollar lately? Very curious. It's down relative to the Yen, but so is every currency in the world with the collapse of the carry trade. It has, however, gained radically (25-30%) against the Euro and other floating world currencies. That might change after a little stimulus... |
| Bob_Robertson Jan 23, 2009 2:26 PM EDT |
The problem with trying to compare currencies together, is that they're all fiat currencies. The Yen, for instance, has been being printed in huge quantities for decades. The Japanese central bank had _negative_ interest rates (giving the banks money to keep them afloat), and yet the dollar/yen remained relatively stable. That can only happen if the same thing is happening to the dollar, and that was 8 years ago when I was living in Japan! So for a practical comparison, one must look at something that isn't just printed, like gold. It's not perfect, because currencies rise and fall against gold for many reasons (not simply quantity in circulation), but since 2001 gold has trippled solidly. What that means to me is that they're printing euros, in good Keynsian "print wealth" style, just like dollars. Or even more. Mises.org and LewRockwell.com are excellent sources for this kind of thing. |
| tuxchick Jan 23, 2009 2:29 PM EDT |
We get in trouble when we try to spend money we printed ourselves. |
| Bob_Robertson Jan 23, 2009 2:57 PM EDT |
> spend money we printed ourselves. Counterfeit. It's not just a crime, it's the Federal Reserve. ---- Ok, that is out into opinion land. Let's try this: When money is stable, people can calculate and plan years, even decades in advance. When money is fiat, such plans cannot be made because there's no way to know what money will be worth in the future. My father bought a house in 1952 for $30K. It sold in 1979 for $300K. Now? Who knows. And _that_ is the problem. We just don't know. I understand that the trillion-dollar Zimbabwe bill has gone into production, it was worth $33 when it was first made, but has depreciated approx. 50% per day. |
| ColonelPanik Jan 23, 2009 3:25 PM EDT |
Barter? I fix your car, you get LAMP all set up for me! |
| Bob_Robertson Jan 23, 2009 5:02 PM EDT |
Colonel, One can always follow the lead of Anarcho Jesse: [url=http://www.google.com/search?q=anarcho jesse labor note]http://www.google.com/search?q=anarcho jesse labor note[/url] How many notes for a full LAMP install? Hmm.... Edit: Found the single result I was thinking of: http://www.youtube.com/watch?v=dtREMZbRG9E |
| ColonelPanik Jan 23, 2009 8:57 PM EDT |
Colonel Coins? I have always been intrigued by .alt currencies.
They have been around for a long time, since this country was
founded. http://en.wikipedia.org/wiki/Alternative_currency LAMP is installed, thats the easy part. I just don't know where to start. Been reading stuff, getting more confused. I don't drink or use drugs, could that be the problem? |
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