Quote from: Sovereign on October 04, 2011, 03:35:43 PM

Quote from: Iseree22 on October 02, 2011, 08:39:52 AM

What is wealth measured in? Currency units. Therefore the total wealth of an economy is going to track very closely with the amount of money in circulation.

You have absolutely no idea what you're talking about. By this logic, Zimbabwe should be one of the richest countries, since it has a huge amount of money in circulation.

The Weimars had so much cash, they burned it to keep warm! So much for 'currency units'. Rofl.

You don't make any sense. If you go back and read carefully and, think just a little, then you will realize that wealth in every country is measured in currency units. We don't compare how many pigs, shoes, cars, etc, etc we have, instead we do something that may appear complex to some, but after carefully thinking the process through it is actually quite simple. We sum the value of everything we have in currency units, and call this wealth.

Let me know if you have trouble getting your head around that concept.

Once you have understood that, there is another concept called currency purchasing power. But first we should get a handle of the basics before moving to more advanced topics.