Good lord, there was little or not gain -- - in any substantive manner from the sale. The intentional dilution of the value of a dollar is caused by government action. And worse, client will be taxes on capital gain as if all his dollars were 1950 dollars. Inflation is caused by the fed and inflation is a taking -- it is a loss of purchasing power. I am trying to reconcile a monetary policy with the framer's intent of a limited central government that is required to give due process before any taking of property. THE CONSTITUTION EXPLICITLY GIVES THE GOV THE RIGHT TO CHANGE THE VALUE OF THE CURRENCY It seems to me that by changing the scoreboard, no due process at all is given before something is taken from every body who hold dollars via inflation. AGREED. And it is your argument that this is not just o.k., but you support taxing what already has been taken so thing don't get overheated (but overheating was caused by the government in the first place, no?). Warren: I've been reading your views a lot lately and understand most of them as you explain these clearly for non-economists. I also read the transcript of your interview on Hard Asset Investor. I still have some confusion with this issue: when govt runs a deficit is that adding to the money supply? I realize that taxes and Treasury security sales equal spending so the answer should be no? As you say, there