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Joel,<br> Your blog is the Blog of Truth and I just wanted to shed some light on the dollar Clark didn't want to pay for parking.<br> Money is used as a medium to trade human labor. The labor being traded is goods that are made or services that are rendered. The value of the labor is determined by how much demand for the labor there is in the market. One person trades the value of their labor for the value of another person’s labor and use money to make that exchange happen more easily.<br> If the value of the money being exchanged is changed then the markets get disrupted because the value of the labor being traded is harder to determine (Like someone constantly changing a scale from pounds to kilograms.). Presently the value of money is decreased when the government and the Federal Reserve pump more money into the system than there is labor to trade for it. With more money in the system the value of the money decreases and it causes inflation because the markets try to correct themselves back to the true value of the labor being traded.<br> The supply of money needs to be stabilized in order to correct the cycles of inflation or deflation. If the supply of labor in the market increases then the supply of money to trade that labor would need to increase so that the value of the labor could be accurately priced in the market. Likewise if the labor in the market decreases then the supply of money should decrease so that the value of the decreased labor can be accurately priced in the market.<br> The only way to accomplish this is to make strict rules to tie the supply of money to the supply of labor. A way this could be done is to tie the money supply to the Gross Domestic Product (GDP). If GDP goes up 3% then increase the money supply by 3%. The opposite would be if GDP goes down 3% then decrease the money supply by 3%. This would stabilize the dollar and almost eliminate its change in value over time. The value of labor being traded will always change but the value of the medium to exchange that labor would remain more constant under this method.<br> With a fixed money supply based on the GDP, paying a dollar for parking now will be pretty close to a dollar for the same parking in the future.<br> Just a little bit of truth for the Blog of Truth.<br> <br> William<br> ineonovo@yahoo.com
By William
