tag:blogger.com,1999:blog-7225373.post6679861470911017714..comments2024-02-29T03:34:23.190-05:00Comments on Who Were the Sea Peoples?: Golden Meteors and Cantillon Effectsgcallahhttp://www.blogger.com/profile/10065877215969589482noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-7225373.post-10671107155008820552012-12-12T12:29:06.207-05:002012-12-12T12:29:06.207-05:00Um, Silas, this post is about Cantillon effects?Um, Silas, this post is about Cantillon effects?gcallahhttps://www.blogger.com/profile/10065877215969589482noreply@blogger.comtag:blogger.com,1999:blog-7225373.post-1973513279777239592012-12-11T20:36:45.224-05:002012-12-11T20:36:45.224-05:00Gold meteors add real wealth to the economy rather...Gold meteors add real wealth to the economy rather than simply re-arrange it (as you note) in favor of we the well-connected. Yes, it's disruptive, in the sense that "creative destruction is" -- the destruction is the result of adaptation to new wealth.Silas Bartahttps://www.blogger.com/profile/09480427306873460464noreply@blogger.comtag:blogger.com,1999:blog-7225373.post-15502142824487175092012-12-11T15:39:07.575-05:002012-12-11T15:39:07.575-05:00A Picasso is a little tricky. Each one is essenti...A Picasso is a little tricky. Each one is essentially unique so the marginal cost of production is undefined.(or infinite) Since there are no producers of Picassos, there really isn't much room for Picasso purchasing to distort investment. <br /><br />Really, the best model for Picassos is a sort of currency with very limited supply.(and thus our farmer is just exchanging one form of money with another) If he then holds onto his Picassos(instead of exchanging them for other goods and services), I can't see the result being much different than if he had hidden the meteor instead of spending it.(or if the meteor had never landed)<br /><br />If, on the other hand, our dirt farmer invests his resources, turning his new wealth into permanent income for consumption, then the changes in demand are essentially permanent as well.Unknownhttps://www.blogger.com/profile/00660105508192684771noreply@blogger.comtag:blogger.com,1999:blog-7225373.post-4956850621000731292012-12-11T13:54:35.866-05:002012-12-11T13:54:35.866-05:00You have left out two salient factors which underl...You have left out two salient factors which underlie the difference between govt inflated fiat currency and changes in the supply of a commodity.<br /><br />1) The moral hazard inherent in ownership of the money printing press does not exist.<br /><br />2) No Legal Tender Laws. If the scarcity of gold were to decrease to the point where it was not useful as a money, or the instability was less than desirable, anyone could base their accounts in something more stable, such as platinum, silver, shares of Microsoft, etc.<br /><br />Having more of something that is worth less is not an increase in wealth. That's Keynes' greatest lie.Curt-https://www.blogger.com/profile/15378506296755879713noreply@blogger.com