Question: Isn't the Falling Money Supply the Problem?

Answer:

Hi Alex,

The key is cause or effect. I think your money argument is still part of the effect (although in its own right causative).

The causes would seem more all-encompassing (e.g. we need to have an absolutely world-class, most-friendly business climate - which we don't have). This means the Republicans have to open up on immigration. The Democrats on being pro-business and anti-entitlements.

You are right that things are going to take huge amounts of capital to support the highest paying future jobs (e.g. Malaysia is building a billion dollar plant to support 1,000 jobs).

We also need to get rid of teacher unions. We can't afford to pander to their seniority and lack of performance.

Having made America immigration open and educationally strong, we also (for example) need to have competitive corporate and personal income tax rates (again, which we don't).

So money supply to me is more of an effect of having an anti-business climate which both keeps entrepreneurs and businesses from coming to the US and drives those there away.