The government can never run out of money.

What a load of nonsense. Borrowing is as old as money itself. Inflation, not so much.

 

...then why do we need banks at all, other then centers of investments? Why not just one simple app that represents money through virtual coins? An electronic national bank controlled by the letters of The Constitution: Congress has the power to coin money. This "which comes with a corresponding liability that usually extinguishes the money created, or through government deficit spending, which adds new net financial assets to the domestic private sector." is just the long way around, a Rube Goldberg of an economy.

Just remove private banks from the picture, we don't need them anymore to "protect" our virtual money. They are simply a drain of huge proportions on the economy, through fraudulent fractional banking practices and unscrupulous fees and interest... which account for nothing more than hidden taxes. We're in the 21st Century now... while our economies remain married to thousand year old ideas. And, no... it has not been our economy which has given us the last century of experiential technology and progressive future, it has been our innovations that have brought us this far... despite the current system of economy.

 

What do you mean by, no more money, under Any form of capitalism and the Capital use of the other Peoples' monies.

 

Maybe you can expand on your impressive expose on macroeconomics by telling us how debt repaid after a period of time, plus compound interest, in the aggregate of a whole economy, does not expand the money supply?

 

It's all fraud. Citizens lose their jobs and go to jail for fraud. Government make a living off of fraud. If you have money in the bank, get it out now. Buy pounds of beans and rice, and an extreme amount of water. If you live in a big city make sure you have something to protect it, or head to the mountains. It's over.

 

You'll have to ask the person I was responding to. He seems to be against inflation and printing money.
He was just saying how he wants the freedom to turn $1 into $2. If there is no more money being inserted into the economy, how would he ever get $2. All there would be is $1. Other peoples' monies have to come from somewhere. No one is allowed to print it legally but the Fed Res.

 

People eventually used confederate currency and bonds for wall paper. "It's not worth a Continental" meant worthless during much of our revolutionary struggle. Similar to "It's not worth sh%t" today.

 

Why? If things get to bad, just run too the edge of the flat earth and jump off. LOL.

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We aren't talking confederate money here, are we? So what's your point?

 

I will buy "not worth (*)(*)(*)(*) dollars" at a rate of 5000 not worth (*)(*)(*)(*) dollars per ounce of gold

 

That what money can buy is important to human beings.


Quote Originally Posted by dairyair View Post
How is this post even relevant?
What does it matter what $1 could buy 66 yrs ago.
Do you know what you could buy with $1 in 1816?"

Money, like labor, matters. As too inflation - no one fully understands inflation.

The impact of one great price wave was felt globally even by isolated cultures. There are many such examples including this:

"… in the Pacific, the 14th century was also an important pivot point for the history of oceanic cultures. The expansion of Polynesia, which had begun as early as the ninth century, came to a sudden end in the 14th century. There was no Black Death or Mongol horde in Polynesia. The research of New Zealand scientist A. T. Wilson yields evidence that the cause may have been a change in climate. His analysis of isotope ratios in calcium carbonate deposits shows evidence of an onset of an unusually cold period, with increased Pacific storms of such a magnitude as to deter even ocean voyagers as skilled as the Polynesians.
These global events tell us that the etiology was not specific to a single culture, or to a particular agent such as the Black death. They must have developed from a larger cause that affected virtually every part of the inhabited world." The Great Wave, Price Revolutions and the Rhythm of History, David Hackett Fischer. Oxford University Press, NY, NY, 1996. p. 266, 267.

 

Because the interest is the cost of borrowing. Does paying my light bill expand the money supply, or is it the cost associated with using electricity?

 

Again, my point to the other poster who doesn't want inflation or money being printed, because that is also inflation.
Without inflation, the only other means to more wealth is taken from the earth. Minerals, water, air, metals, food.
I am far far from an economist.

 

You pay the cost to generate the electricity, which include paying all the employees of the electric company plus some extra money to put away for needed future equipment and possibly even more to offer a profit above all the expenses. So it doesn't increase the money supply for you'd have to have the money available to begin with or the electric company would get no money.

If there is less and less money to go around, you get deflation.
IMO, there is always either inflation or deflation. And deflation is far far worse than inflation.

 

The dollar is worth a lot of Sh*** right now. Eventually there may not have been enough Confederate currency to buy an ounce of gold.

 

Geez...you're an economic wizard huh?

http://useconomy.about.com/od/tradepolicy/p/Dollar_Value.htm

 

But the problem is that you can't keep running a war economy after the war ends. And as soon as WWII ended we were right back in recession. The only reason that Recession didn't go to depressionession was that most of the rest of the world was in far worse shape than we were making us effectively the only game in town and exports to rebuild Europe Japan and other places pulled our fat out of the fire. In spite of that we were on the verge of Recession when Kennedy became president and reduced taxes from 90% to 50% and cut capital gains and the economy took off only to be choked off by LBJ jacking the capital gains and tax rates back up.

 

Does the right not really believe in or have any Faith in Capitalism creating value?

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just Orwellian fantasy based on hearsay and soothsay. The Fed's job is to control inflation.

 

even if they are, confederate money has become a collectable item and worth more than face value in some cases.

 

I too am not an economist. I have studied inflation and I find a lot of contradictions - I do not understand it. Hyperinflation and the printing press seems pretty straight forward, But moderate inflation, long inflationary waves, and price equilibrium are a mystery to me - and apparently to economists.

Hard currencies are not immune from inflation or deflation. Massive increases in the gold and silver supply did not necessarily result in inflation. Money is a strange thing.

 

both; but, being able to pay your bills results in a positive multiplier effect on our economy.

 

dude; you need to catch up to modern economic times. What do you believe, "quantitative easing" was?

That is what "bailouts" do.

 

LOL! I have admitted that I do not understand inflation - on this thread. Read the posts lesh.

 

Is that supposed to contradict something from my posts? Inflation is certainly under control. I would assume that Fed policy has a great deal to do with it.

 

LOL! Danny! How does that relate to my post? How does it contradict anything from my posts?