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Hypothetical: I live in Boombaville, a closed economic community in which the total money available equals $1000 and where money orders cost $.50. Having closed an auction deal with an AFOL in a distant part of Boombaville, I proceed to the post (...) (24 years ago, 21-Dec-00, to lugnet.off-topic.fun)
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| | Re: All The Money In The World
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(...) Assuming your money is part of the total $1000 the economy never would increase because you give $10.50 to the post office. The post office increases it's portion of the $1000 dollars by $10.50 at the same time you lose $10.50 of your portion. (...) (24 years ago, 21-Dec-00, to lugnet.off-topic.fun)
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| | Re: All The Money In The World
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(...) Does that include the time between the purchase of the money order and its cashing? During that time it seems that there is $10 more in circulation--not actual, minted coinage, but legal tender nonetheless. Dave! Still talking to himself. (24 years ago, 21-Dec-00, to lugnet.off-topic.fun)
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| | Re: All The Money In The World
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(...) It depends on how you measure "the total money available." If you measure it as the acutal cash (greenbacks, etc) - then no - you don't have the $10 anymore, and the total money hasn't increased. But if you measure "the total money available" (...) (24 years ago, 21-Dec-00, to lugnet.off-topic.fun)
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| | Re: All The Money In The World
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(...) So in essence my question was phrased incorrectly--there isn't $1000 available in Boombaville; there's $1000 in printed cash, but there's no limit on "actual money." Got it. (...) Cool! That goes along nicely with my plan to start Xeroxing (...) (24 years ago, 21-Dec-00, to lugnet.off-topic.fun)
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| | Re: All The Money In The World
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(...) Sure - The money is just changing forms. Think of it as making change. SRC Who is attempting to make a living doing basically that. :-) (24 years ago, 21-Dec-00, to lugnet.off-topic.fun)
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| | Re: All The Money In The World
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(...) Yes it includes the time, but that money order you've got in your hand is simply "valued at" property. The money order itself is not actual money. One might say, however that you've increased the amount of VALUE in the town temporarily, but (...) (24 years ago, 21-Dec-00, to lugnet.off-topic.fun)
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| | Re: All The Money In The World
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(...) your (...) Isn't this an illustration of the money multiplier effect? The most liquid instruments, M1, which include cash, checks, money orders, etc., have the highest "multiplier" because they circulate faster, increasing the value of money (...) (24 years ago, 21-Dec-00, to lugnet.off-topic.fun)
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| | Re: All The Money In The World
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(...) That would be unethical (which, I believe, is another thread)... However, it is also illegal - and we could debate the reasons why our society has chosen to make such activity illegal, or anything illegal for that matter. Any takers? -Jon :-) (...) (24 years ago, 21-Dec-00, to lugnet.off-topic.fun)
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