FOREX TRADERS

[Capitalist]

Actually the ultimate "cost" of something comes down to how much human labor has to be exchanged for that thing. Money and currencies, etc. are just human accounting technology that we use to keep track of real relationships like "how much work do I have to do to get a gallon of milk?"

If I make $10 per hour and the price of milk is $2.50/gallon, then a gallon of milk costs me 15 minutes. If the price of milk triples but the median income goes up by a factor of six, then the PRICE of milk went up in terms of dollars. But its real COST went down.

Milk costs &7.50 but if I now make $60/hr then it only costs me 7-1/2 minutes per gallon, while it used to take me 15 minutes to earn a gallon.

Labor, raw materials, goods and services are real. Money and currencies are just accounting tools. That's why all the controversy about whether the Fed can inflate the currency or not isn't ultimately important. If the Fed decided to add 14 zeros to the end of everyone's bank account tomorrow, it still wouldn't change the fact that a Ferrari is worth more than an old boot.

So I think that since it's Friday, I'm going to follow Sheryl's lead....

Off til next week....