tag:blogger.com,1999:blog-8897997766931633186.post2388402588022324540..comments2024-02-14T03:21:37.506-05:00Comments on Monetary Freedom: Investment and the Purpose of ProductionBill Woolseyhttp://www.blogger.com/profile/06330232724290161369noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8897997766931633186.post-92065924403496062422016-02-19T21:24:39.206-05:002016-02-19T21:24:39.206-05:00Right investment can make a massive difference, bu...Right investment can make a massive difference, but if we do it with wrong company or wrong place then it can really make it all difficult. I am investing only with OctaFX broker where not only I get complete safety and security, but I also get boost through their 50% bonus, it is just incredible given we can use it in whatever way we like and that’s what really makes me comfortable and relaxed with doing everything and gives great results.Virendanoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-29736895926151201012011-01-07T13:27:47.352-05:002011-01-07T13:27:47.352-05:00Can cash--currency--be a "capital good"?...Can cash--currency--be a "capital good"? How about a retailer's till cash--coins and currency used to make change?<br /><br />A manufacturer's purchase of raw materials would count as "investment." How about the purchase of a futures contract for raw materials to be delivered next month?<br /><br />Whichever way you answer these questions, it's hard to see why you think *investment* (as distinguished from *purchasing financial assets*) is an important concept for economic analysis.<br /><br />-------------<br /><br />It is unclear to me whether your talk of "expenditure" means *nominal* expenditure or *real* expenditure. If (as I suppose) you mean the latter, let me ask what would generate a widespread expectation of lower consumer expenditure in both the nearer and the farther future? A couple of answers that strike me as obvious possibilities: (1) an expectation of falling population indefinitely into the future; (2) an expectation of institutional changes that would lead to society's steadily approaching autarky. What are some other possibilities?<br /><br />Of course, an expectation of declining *nominal* expenditure could be based on an expected decline in the velocity of money, without any other exogenous change. Maybe this is what you have in mind, after all.<br /><br />------------<br /><br />"If firms cannot see how additional capital goods can be used to produce consumer goods and services that can be sold at a profit in the future, then the resources should be used to produce consumer goods and services in the near future." Unless they also cannot see how near-future consumer goods can be sold at a profit; what then? "And the way to motivate firms to produce those consumer goods and services is an expansion in spending on consumer goods and services now." This is so only if firms naively project present circumstances into the near future; but in some circumstances this will be irrational.Anonymousnoreply@blogger.com