DenisL

The Fed is Deflating: 10 Reasons Why

Wonderful article because it raises so many questions!
Thanks.
Just curious. Most of our arguments about money and the economy are based on the idea that M1 is conceptually like gold, and that the value of M1 is not subject to manipulation or fudging like CPI statistics.
Lately I have read that gold itself is subject to manipulation because there may not be the gold in the National vaults around the world that we are told. Everything including the old economists back in the 1800s is based on a mathematical model that is true only if it predicts the real world. My problem is: "The real world adapts to and thus changes all economic models. Is M1 really like gold? And is gold nowadays like gold was in the old days. This idea that the economic world changes when we think about it (I am thinking about what he is thinking about what everyone else is thinking everyone else is thinking, if you know what I mean) gives me a headache when trying to decide what to do economically to protect my family."