https://archive.freecapitalists.org:443/forums/5.aspxenCommunityServer 2008.5 SP2 (Build: 40407.4157)https://archive.freecapitalists.org:443/forums/thread/375203.aspxWed, 27 Oct 2010 19:36:34 GMT944abf2b-d1be-4bf2-990d-438cb0e377e9:375203Saiphes0https://archive.freecapitalists.org:443/forums/thread/375203.aspxhttps://archive.freecapitalists.org:443/forums/commentrss.aspx?SectionID=5&PostID=375203<p> Doug French&#39;s daily article today inspired the question of what is the real value of adjusting to current dollars?</p> <p> If you adjust dollars according to prices, you get some number, but how useful is that?&nbsp; In his article, todays banking losses are 80 times depression era losses.&nbsp; This calls into question the entire money supply and how that skews the interpretation of the numbers.&nbsp; That is, how is it possible that the numbers today, adjusted for inflation, are 80 times what they were during the depression?&nbsp; This suggests that the 8 trillion is less significant today because the economy has grown in a way not accounted for in the inflation adjustment.&nbsp; I can only guess that FRB allows this kind of exponential money supply expansion while affecting prices less severely.</p> <p> Comments?</p><div style="clear:both;"></div>