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Schiff: The Real State of the Union 2013


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#91    Einsteinium

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Posted 01 March 2013 - 10:40 PM

View PostYamato, on 01 March 2013 - 10:33 PM, said:

No, things could be a lot better.  We could have swallowed the medicine in 2008 and we would have been well on our way to a full recovery by now.   We'd have fiscal responsibility, we'd have sound financial institutions to lend us money, we'd have responsible borrowing, higher credit scores, a sovereign AAA rating, and a national focus on production and savings instead of consumption and credit.   On GDP and capital instead of gratification and debt.   We'd have politicians with a shred of fiscal responsibility in their skirts, because they'd have to act like they didn't have a magic printing press to solve immediate problems with far greater long term problems.  

We don't have any of that.  Nothing has been solved since 2008.  We've just borrowed over our problems and dug ourselves deeper into the same ditch.   When Wall St. is going to the moon Alice, everyone is complacent and nobody cares.  Wall St. seems to dictate everyone's attitudes and it has put you into a deep deep sleep.   If a panic is all our real economic problem is, that's on its way.  We haven't prevented any future panic, we've guaranteed the future panic is going to be far more massive than 2008's.

There is no way for anyone to prove what you have just asserted. No man living or dead could know what would have happened had the government not intervened. But historically speaking the most likely result would have been another great depression like situation. A run on banks, far greater unemployment than we currently have, no credit available for anyone for a long time, shrinking businesses, extreme deflation, etc. The great depression is the closest thing we can look at to try and figure out what could have happened had the government not stepped in. Only time will tell if we crash and burn as a result of what was done in 2008 or not. But we were borrowing more money as a ratio to GDP in WWII and look at the booming 50's. It could go either way still, only time will truly tell. Although sadly I agree with you that most likely we will crash and burn.


#92    Yamato

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Posted 01 March 2013 - 10:49 PM

View PostEinsteinium, on 01 March 2013 - 10:34 PM, said:

Actually, capitalism IN ANY KNOWN HISTORICAL form needs growth in order to exist. Why? Because our population continues to grow. If our economy does not grow along with the growth of population, then we reach a point where demand far exceeds supply, and where our money supply cannot sustain the population. Hypothetically if our population growth levels out, then theoretically we should be able to sustain an economic system with no growth. However, be prepared to kiss good returns on investment goodbye, kiss your hope for a better future for your kids goodbye, and kiss your retirement goodbye as well. The stock market system we have feeds on economic growth, and without it returns on stocks would be basically zero. Taking away the incentive to invest, and thus collapsing the stock market. As it currently exists of course.

Make no mistake about it, we WILL be printing and borrowing our way out of the next one, and the next one, and the one after that even. Until one day it all comes crashing down. This is our system, we do not change anything until a crisis forces us too. I don't like it, you obviously don't like it, but sadly that is the way it is, and that is the way it has been since times long forgotten.
The economy is correlated to population size but the principle about growth is just as true for population as it is for the economy.   Please review the nine parts of the following presentation by Dr. Bartlett before trying to put this ruse off that anything needs an impossibility to exist.  Populations aren't going to grow forever and neither are economies.   All we've done is applied some very irresponsible methods for allocating scarce resources to keep the champagne taste on a beer budget intact.  We're not going to grow our way out of this and you admitting we're going to crash is probably the most agreement we will have here.   The thing to do from here is to understand why.


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#93    Yamato

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Posted 01 March 2013 - 10:58 PM

View PostEinsteinium, on 01 March 2013 - 10:40 PM, said:

There is no way for anyone to prove what you have just asserted. No man living or dead could know what would have happened had the government not intervened. But historically speaking the most likely result would have been another great depression like situation. A run on banks, far greater unemployment than we currently have, no credit available for anyone for a long time, shrinking businesses, extreme deflation, etc. The great depression is the closest thing we can look at to try and figure out what could have happened had the government not stepped in. Only time will tell if we crash and burn as a result of what was done in 2008 or not. But we were borrowing more money as a ratio to GDP in WWII and look at the booming 50's. It could go either way still, only time will truly tell. Although sadly I agree with you that most likely we will crash and burn.
The entire US history of the government not intervening is the precedent of what I just asserted.   The banks should have been run on.  That's what they deserved.   I ran on my bank voluntarily and I'll never go back to that scum of a corporation again.  That was the solution.  And I'm glad I solved the problem for myself.  I haven't had credit taken out for a long time.  I've made sacrifices. I'm still here and I'm responsible now.  My spending problem was duly solved, not enabled. And I know who I am and how I'm valued.  I pay my bills and I have an excellent credit score for not having a dime of credit card debt, student loan debt, or mortgage debt.  

World War II was a disaster for the economy here at home.  If you want to know what austerity is, you have no idea unless you lived in the US in WW2.   This cream puff generation can't stand to get a little boo boo on its finger before it whines for the establishment to go print something.   The economic recovery didn't start until long after WW2 when the government collapsed into its own footprint.  Government spending collapsed.  It went off a cliff, and the free market exploded after that happened.  That's what we need to do right now.  It might be a horrible two years of austerity and our people won't have a big bad bogeyman in Europe as the faceman for all their pain either.  It'll be a lot closer to home this time, and maybe even as close as the mirror, and so a lot more politically difficult to accept.  But that's no excuse.   The only good thing the war did was dramatically accelerate technologies and the economy got a boost from innovations in transportation, automation, communication, materials, and so on.   It was a bankrupting waste of men and material otherwise.   A horrible allocation of resources.   We had some 60,000 surplus aircraft at the end of the war and most of them went to the scrap yard.  That's the same kind of ruinous mentality we have with these Keynesians today.  The Broken Window Fallacy lives on.

Edited by Yamato, 01 March 2013 - 11:04 PM.

"Peace cannot be achieved by force, only by understanding."  ~ Albert Einstein
"To deny people their human rights is to challenge their very humanity.   To impose on them a wretched life of hunger and deprivation is to dehumanize them." ~ Nelson Mandela
"I like your Christ, I do not like your Christians.  Your Christians are so unlike your Christ." ~ Mahatma Gandhi

#94    ninjadude

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Posted 02 March 2013 - 02:56 AM

View PostYamato, on 01 March 2013 - 12:29 PM, said:

   Treat your government by the same standard.  

personal budgets are totally unrelated and unrelatable to government economics. I'm sure you'll disagree but it's a fact.

Edited by ninjadude, 02 March 2013 - 02:56 AM.

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#95    ninjadude

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Posted 02 March 2013 - 02:59 AM

View PostYamato, on 01 March 2013 - 08:45 PM, said:

I think the fantasy is that you'll never have to pay your bills.

your fantasy is that somehow the government is not paying bills.

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#96    ninjadude

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Posted 02 March 2013 - 03:09 AM

View PostYamato, on 01 March 2013 - 10:33 PM, said:

No, things could be a lot better.  We could have swallowed the medicine in 2008 and we would have been well on our way to a full recovery by now.   We'd have fiscal responsibility, we'd have sound financial institutions to lend us money, we'd have responsible borrowing, higher credit scores, a sovereign AAA rating, and a national focus on production and savings instead of consumption and credit.

This is a pipe dream. In fact, things would be much worse than they are now.

"Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it. Begin it now!""
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#97    Frank Merton

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Posted 02 March 2013 - 03:16 AM

The government could send everyone a check for some arbitrary sum, drawn from the air, and then send everyone a tax bill for the same amount, and announce it has balanced the budget with this special tax.

This is really what is going on, although in fact the tax is less than the sum they send us, so they run a deficit.  This causes people to think they have some money and they spend it and behold! it becomes real money and real product and real services.  A surplus is one of the most foolish things a government can run, as sooner or later it is bound to cause deflation.

It's not magic and its not tomfoolery.  It's just that "money" is only a unit of measurement of worth, and worth is nothing more than what people are will to buy and sell things for, and this can vary all over the place based mainly on supply and demand which also vary based on desires, needs, mood, feelings of flushness, and whatever.


#98    Yamato

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Posted 02 March 2013 - 03:39 AM

View Postninjadude, on 02 March 2013 - 03:09 AM, said:

This is a pipe dream. In fact, things would be much worse than they are now.
Yeah that's what the soap box keeps repeating.  Unfortunately the proof comes in the form of political blogs, politicians, and the usual faithful herd of sheep that's happy with President Obama.  It's baseless and frankly absurd to believe the notion that somehow this time the economy wouldn't have recovered in four years time without Obama's spending spree.   Thumbs up for your fiscal cancer.   Bravo "Frank".

View Postninjadude, on 02 March 2013 - 02:59 AM, said:

your fantasy is that somehow the government is not paying bills.
Yeah that thing called the debt.  You should check the clock now and then.  It's another fact I can actually cite.

View Postninjadude, on 02 March 2013 - 02:56 AM, said:

personal budgets are totally unrelated and unrelatable to government economics. I'm sure you'll disagree but it's a fact.
Oh sure principles like paying bills and borrowing responsibly don't apply to the giant printing press in the sky or the gang of liars and their selfish entitlement complexes.

"Peace cannot be achieved by force, only by understanding."  ~ Albert Einstein
"To deny people their human rights is to challenge their very humanity.   To impose on them a wretched life of hunger and deprivation is to dehumanize them." ~ Nelson Mandela
"I like your Christ, I do not like your Christians.  Your Christians are so unlike your Christ." ~ Mahatma Gandhi

#99    Yamato

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Posted 02 March 2013 - 03:50 AM

View PostFrank Merton, on 02 March 2013 - 03:16 AM, said:

The government could send everyone a check for some arbitrary sum, drawn from the air, and then send everyone a tax bill for the same amount, and announce it has balanced the budget with this special tax.

This is really what is going on, although in fact the tax is less than the sum they send us, so they run a deficit.  This causes people to think they have some money and they spend it and behold! it becomes real money and real product and real services.  A surplus is one of the most foolish things a government can run, as sooner or later it is bound to cause deflation.

It's not magic and its not tomfoolery.  It's just that "money" is only a unit of measurement of worth, and worth is nothing more than what people are will to buy and sell things for, and this can vary all over the place based mainly on supply and demand which also vary based on desires, needs, mood, feelings of flushness, and whatever.
The best and most honest thing that could happen to this country is God forbid, a few years of deflation, to get our people off these impossible expectations of endless inflation.  The purpose of this system was supposed to be currency stability, now they shamelessly admit that their purpose is to maintain continuous inflation and call that stability.   There's nothing magic about constant inflation, this shell game of endless demand, endless supply and endless growth nearly imploded as it naturally should have but we bandaided over it with massive federal capital injections.   Well now we have piled on more debt courtesy of George W. Bush and Barack Obama than the entire history of the United States.   How much do you make a year in "Ho Chi Minh City, Frank"?    Run your debt up to 4.7 times your annual income and tell me how any bank in their right mind is going to treat you.  You'd be bankrupt 5 times over again.  Telling me that it's different for the US government than it is for individuals isn't telling me anything valuable I can apply in life.  The reason why they're different is because I can't print money on my printing press in the basement.  Well I could, but if I did it on the right 100% cotton paper and with the right ink, and made it look all official like, I'd go to prison and rightfully so.   The government would put you in a cage for doing what it does with no known limits in the proud moral decay year of 2013.  Because you're not the best decider for what to do with your own money, you've got to hand it over to Goldman Sachs who knows better what to do with it than you do.

"Peace cannot be achieved by force, only by understanding."  ~ Albert Einstein
"To deny people their human rights is to challenge their very humanity.   To impose on them a wretched life of hunger and deprivation is to dehumanize them." ~ Nelson Mandela
"I like your Christ, I do not like your Christians.  Your Christians are so unlike your Christ." ~ Mahatma Gandhi

#100    Yamato

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Posted 02 March 2013 - 03:57 AM

The first day of the apocalypse has arrived.  If you haven't stockpiled your baked beans, it's too late Br.  I'm sorry.  ;)





"Peace cannot be achieved by force, only by understanding."  ~ Albert Einstein
"To deny people their human rights is to challenge their very humanity.   To impose on them a wretched life of hunger and deprivation is to dehumanize them." ~ Nelson Mandela
"I like your Christ, I do not like your Christians.  Your Christians are so unlike your Christ." ~ Mahatma Gandhi

#101    Einsteinium

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Posted 02 March 2013 - 07:43 PM

View PostYamato, on 01 March 2013 - 10:58 PM, said:

The entire US history of the government not intervening is the precedent of what I just asserted.   The banks should have been run on.  That's what they deserved.   I ran on my bank voluntarily and I'll never go back to that scum of a corporation again.  That was the solution.  And I'm glad I solved the problem for myself.  I haven't had credit taken out for a long time.  I've made sacrifices. I'm still here and I'm responsible now.  My spending problem was duly solved, not enabled. And I know who I am and how I'm valued.  I pay my bills and I have an excellent credit score for not having a dime of credit card debt, student loan debt, or mortgage debt.  

The thing you seem to fail to understand is that the entire history of the government not intervening in the economy during recession happened before the great depression and those recessions were much longer and deeper. This history of non-interventionist policy culminated in the Great Depression, towards the end of which the US government was forced to intervene as a direct result of our entry into WWII. The government then intervened, spending massive amounts of money at a deficit to ramp up the industrial war machine, drafting millions of troops, putting pretty much everyone else in the country who was not drafted to work, women and men alike, building war machines, ammunition, gun powder, food, etc. This massive deficit spending was the end of the great depression. Yes austerity was needed for civilians at home (but this was not the same as economic austerity like the kind you see in Greece today), because all the money and work had to be put towards the war. After the war was over, and the troops came home, there were far more factories, industrial machines, etc. than there were before the war. And guess what? Europe was a disaster zone. So guess what we did? We started building building building, using those factories and machines the US government financed at a deficit to help Europe re-build. We made out the best after the war, because our factories and industries were never destroyed like the ones in Europe. It is because of this fact that the US became a world superpower after WW2, and it was a direct result of the massive deficit spending done for the war effort. In fact after the war our deficit was so high that congress raised taxes up to over 90% marginal rate on the richest people for a number of years yet you do not hear people talk about that very much.

View PostYamato, on 01 March 2013 - 10:58 PM, said:

World War II was a disaster for the economy here at home.  If you want to know what austerity is, you have no idea unless you lived in the US in WW2.   This cream puff generation can't stand to get a little boo boo on its finger before it whines for the establishment to go print something.   The economic recovery didn't start until long after WW2 when the government collapsed into its own footprint.  Government spending collapsed.  It went off a cliff, and the free market exploded after that happened.  That's what we need to do right now.  It might be a horrible two years of austerity and our people won't have a big bad bogeyman in Europe as the faceman for all their pain either.  It'll be a lot closer to home this time, and maybe even as close as the mirror, and so a lot more politically difficult to accept.  But that's no excuse.   The only good thing the war did was dramatically accelerate technologies and the economy got a boost from innovations in transportation, automation, communication, materials, and so on.   It was a bankrupting waste of men and material otherwise.   A horrible allocation of resources.   We had some 60,000 surplus aircraft at the end of the war and most of them went to the scrap yard.  That's the same kind of ruinous mentality we have with these Keynesians today.  The Broken Window Fallacy lives on.

WW2 was not an economic disaster here. During the war yes times were tough, but it was for a good cause and so people shouldered the burden and did their part. Rich and poor alike shared in the sacrifice needed to win the war. But as I stated earlier it was the huge increase in industrial might that the war caused, and the fact that we helped rebuild Europe after the war that was the cause for our rise to economic world superpower status. It was not because we had the best economic system, it was because of the position we found ourselves in after the war.

Yes, the free market exploded in the 50's, when the marginal tax rates were: (income adjusted for inflation)

22.2%   $0-$2,000
62%   $20,000-$22,000
75%   $44,000-$50,000
92%   $200,000+

You do not seem to understand the fact that austerity is a horrible plan, and should only be a plan of last resort. Also, it would not just be 2 years, austerity would cripple our economy as it ALWAYS does, and would have lead to another great depression like period and massive deflation- which again you do not seem to understand is horribly bad for our economy as a whole. You really do not seem to understand very basic economics and economic history in this country.

Edited by Einsteinium, 02 March 2013 - 07:45 PM.


#102    Einsteinium

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Posted 02 March 2013 - 08:59 PM

View PostYamato, on 02 March 2013 - 03:50 AM, said:

The best and most honest thing that could happen to this country is God forbid, a few years of deflation, to get our people off these impossible expectations of endless inflation.  The purpose of this system was supposed to be currency stability, now they shamelessly admit that their purpose is to maintain continuous inflation and call that stability.   There's nothing magic about constant inflation, this shell game of endless demand, endless supply and endless growth nearly imploded as it naturally should have but we bandaided over it with massive federal capital injections.   Well now we have piled on more debt courtesy of George W. Bush and Barack Obama than the entire history of the United States.   How much do you make a year in "Ho Chi Minh City, Frank"? Run your debt up to 4.7 times your annual income and tell me how any bank in their right mind is going to treat you.  You'd be bankrupt 5 times over again.  Telling me that it's different for the US government than it is for individuals isn't telling me anything valuable I can apply in life.  The reason why they're different is because I can't print money on my printing press in the basement.  Well I could, but if I did it on the right 100% cotton paper and with the right ink, and made it look all official like, I'd go to prison and rightfully so.   The government would put you in a cage for doing what it does with no known limits in the proud moral decay year of 2013.  Because you're not the best decider for what to do with your own money, you've got to hand it over to Goldman Sachs who knows better what to do with it than you do.

Just so I am clear, you want to wipe out the current fiscal system in the United States and replace it with a hard asset backed currency that will not inflate, such as going back to the gold standard? Is that what you think would help us?

Because ever since the establishment of the federal reserve system every single dollar issued is created with debt. attached to it. Meaning that our system from this point on was never intended to have a stable value currency, but was in fact designed to have a stable inflationary rate currency. Whereby the federal reserve was to ensure that the rate of inflation was to remain stable, not the value of our currency. This was done on purpose to provide the central bank with the tools necessary to regulate the rate of inflation. By allowing inflation and an elastic money supply the idea was that out government along with the central bank (they are separate entities by the way, the central bank acts of its own accord) can thus manipulate the money supply when needed specifically to balance the cut throat business cycle and level out the peaks and valleys of the cycle. This was the idea and basic reasoning behind our current monetary system. I do not agree with every part of it, but again I am not a finance or economics professional and so I am not an expert by any means. But you are proposing to wipe out this system and replace it with the old gold standard system correct?


#103    Yamato

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Posted 03 March 2013 - 06:01 AM

View PostEinsteinium, on 02 March 2013 - 07:43 PM, said:

The thing you seem to fail to understand is that the entire history of the government not intervening in the economy during recession happened before the great depression and those recessions were much longer and deeper. This history of non-interventionist policy culminated in the Great Depression, towards the end of which the US government was forced to intervene as a direct result of our entry into WWII. The government then intervened, spending massive amounts of money at a deficit to ramp up the industrial war machine, drafting millions of troops, putting pretty much everyone else in the country who was not drafted to work, women and men alike, building war machines, ammunition, gun powder, food, etc. This massive deficit spending was the end of the great depression. Yes austerity was needed for civilians at home (but this was not the same as economic austerity like the kind you see in Greece today), because all the money and work had to be put towards the war. After the war was over, and the troops came home, there were far more factories, industrial machines, etc. than there were before the war. And guess what? Europe was a disaster zone. So guess what we did? We started building building building, using those factories and machines the US government financed at a deficit to help Europe re-build. We made out the best after the war, because our factories and industries were never destroyed like the ones in Europe. It is because of this fact that the US became a world superpower after WW2, and it was a direct result of the massive deficit spending done for the war effort. In fact after the war our deficit was so high that congress raised taxes up to over 90% marginal rate on the richest people for a number of years yet you do not hear people talk about that very much.



WW2 was not an economic disaster here. During the war yes times were tough, but it was for a good cause and so people shouldered the burden and did their part. Rich and poor alike shared in the sacrifice needed to win the war. But as I stated earlier it was the huge increase in industrial might that the war caused, and the fact that we helped rebuild Europe after the war that was the cause for our rise to economic world superpower status. It was not because we had the best economic system, it was because of the position we found ourselves in after the war.

Yes, the free market exploded in the 50's, when the marginal tax rates were: (income adjusted for inflation)

22.2%   $0-$2,000
62%   $20,000-$22,000
75%   $44,000-$50,000
92%   $200,000+

You do not seem to understand the fact that austerity is a horrible plan, and should only be a plan of last resort. Also, it would not just be 2 years, austerity would cripple our economy as it ALWAYS does, and would have lead to another great depression like period and massive deflation- which again you do not seem to understand is horribly bad for our economy as a whole. You really do not seem to understand very basic economics and economic history in this country.
What recessions before WWII were a lot longer and deeper?   Every example proves you wrong except for ONE.   You're talking about the periods of the greatest prosperity in US history.   You've got to be kidding me with this mythos that the Great Depression was caused by the government not intervening.   The government in power in 1913 was the most interventionist and deplorable government in all of US history.   The spending boom of the 1920s wasn't caused by the free marketplace, it was caused by Wilsonianism and American Exceptionalism, the creation of the Income Tax, the creation of the Federal Reserve System, and the vaunted need to spread American values all across the world.

The real free market growth of the 19th century was unprecedented and unrivaled to this day.   Something forming from nothing, which is a concept hard for Keynesians to believe.  Our recessions have always been recovered from quickly except for FDR's.  So telling me what I don't understand is pretty bold of you.  If you can admit that austerity was needed at home in WW2 then if you were consistent in your own position you would have to admit that austerity is needed right now.  Spending is spending.  The debt doesn't care one iota whether it's a republican that put it there or a democrat.  It's a dollar of debt and it is owed by the people.  If debt wasn't a problem, if people back then had the attitude that people of today have, that they can mortgage the future of this country away to no end, then there would have been no austerity and then your Keyneisan claims would make some sense.  After all these decades, we would have proven in grand fashion just how much that debt really mattered.  But we still had some fiscal sense back then and did what I'm suggesting that we do now and that was the period of the real recovery.   The '50s and the power of our market economy made the middle class.  The middle class didn't make the economy.

"Peace cannot be achieved by force, only by understanding."  ~ Albert Einstein
"To deny people their human rights is to challenge their very humanity.   To impose on them a wretched life of hunger and deprivation is to dehumanize them." ~ Nelson Mandela
"I like your Christ, I do not like your Christians.  Your Christians are so unlike your Christ." ~ Mahatma Gandhi

#104    Yamato

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Posted 03 March 2013 - 06:14 AM

View PostEinsteinium, on 02 March 2013 - 08:59 PM, said:

Just so I am clear, you want to wipe out the current fiscal system in the United States and replace it with a hard asset backed currency that will not inflate, such as going back to the gold standard? Is that what you think would help us?

Because ever since the establishment of the federal reserve system every single dollar issued is created with debt. attached to it. Meaning that our system from this point on was never intended to have a stable value currency, but was in fact designed to have a stable inflationary rate currency. Whereby the federal reserve was to ensure that the rate of inflation was to remain stable, not the value of our currency. This was done on purpose to provide the central bank with the tools necessary to regulate the rate of inflation. By allowing inflation and an elastic money supply the idea was that out government along with the central bank (they are separate entities by the way, the central bank acts of its own accord) can thus manipulate the money supply when needed specifically to balance the cut throat business cycle and level out the peaks and valleys of the cycle. This was the idea and basic reasoning behind our current monetary system. I do not agree with every part of it, but again I am not a finance or economics professional and so I am not an expert by any means. But you are proposing to wipe out this system and replace it with the old gold standard system correct?
http://www.federalre...about_12594.htm

http://www.thefreedi...y.com/stability

"Inflation stability" is a nonsense idea.  It's an oxymoron.  Just call it what it is, inflation.

Commodity-based currencies like the Australian dollar, the Canadian dollar, the New Zealand dollar have proven better holders of value than the US dollar, although paper money is in a state of global devaluation right now vs. real assets when central banks are printing massive amounts of it.   Returning to the gold standard, if we were to do so, would be a process of transition.  It couldn't happen overnight.   What I would suggest as one step in that direction is to nullify Nixon Shock.  The US dollar as the world's reserve currency is propped up by nothing but market sentiment.  So it's extreme irony that someone who doesn't believe in the power of market sentiment, or the fact that market sentiment is the keeper of real value in the economy, can ride on this wave of fiat currency having value as if the promise of government is what matters.  The government can print more money and hand us our nominal dollars back, it's proven itself to be a consummate catastrophe at maintaining the real value of our money.

If it's never been intended to have stable currency, then that really shouldn't be the primary reason for the Fed's existence then should it?   It's a charade, as you point out.  If the purpose is "stable inflation" then they should lower themselves into the well of truth and admit it.   You would need to be able to cite your sources for believing your claim though as you're not an expert and I have no idea where you're getting your information at.

"Peace cannot be achieved by force, only by understanding."  ~ Albert Einstein
"To deny people their human rights is to challenge their very humanity.   To impose on them a wretched life of hunger and deprivation is to dehumanize them." ~ Nelson Mandela
"I like your Christ, I do not like your Christians.  Your Christians are so unlike your Christ." ~ Mahatma Gandhi

#105    Yamato

Yamato

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Posted 03 March 2013 - 06:31 AM

In summary, the end of the recession of 2008 was artificial, the growth we've created since is unsustainable because eventually the market is going to put its foot down and rein this charade of overspending in.  Government can spend all the money it can dream of, it can blow humankind back into the stone age, it can kick and scream and cry as loud as it wants to, and in the end, the market will always win.   It's fighting an irresistible force, it's delaying the inevitable.   No government lasts forever, no State is a bastion of sameness or stability, the only thing that endures from the beginning of civilization until the end and beyond, is the market.

My advice to anyone reading this is to protect themselves by pinning their savings, investments, and lifestyles onto real assets.  Buy farmland, invest in equities denominated in superior currencies, invest in energy, agriculture, precious metals, exciting new technologies particularly right after they become investable in China, and generally in the geographic regions that represent the greatest creditor nations, not the greatest debtor nations.   The US is the greatest debtor nation in the history of mankind.   The value of the US dollar is continually devalued by the Fed, and continually propped up by the rest of the world who still see it as the reserve currency.   This isn't going to continue for another generation.  If you're a young person who's starting out in life and wants to know where to put your money, don't hand it to the forces that are busily ripping you off and making you pay the price for their transgressions.   Protect yourself now before it's too late.  The real collapse that we printed over and didn't allow to heal properly in 2008 might happen in 2013 or it might be 2028, the idea is to be ahead of the curve, not left holding the bag behind it.

"Peace cannot be achieved by force, only by understanding."  ~ Albert Einstein
"To deny people their human rights is to challenge their very humanity.   To impose on them a wretched life of hunger and deprivation is to dehumanize them." ~ Nelson Mandela
"I like your Christ, I do not like your Christians.  Your Christians are so unlike your Christ." ~ Mahatma Gandhi




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