UndertheOcean
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Tue Jun-29-10 01:18 PM
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I am terrible at economics , a total stupido |
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Edited on Tue Jun-29-10 01:35 PM by UndertheOcean
But this is I feel is the gist of monetary policy throughout the world :
We arrived at the current system through trial and error and incremental steps , and along the way it was found that the ONLY way to increase liquidity in the market without causing hyperinflation is to print money and provide it to people (banks as middle men) as debt with an interest rate attached to it . Any other system will either cause Hyperinflation or deflation.
That is why debt repayment is is a somewhat of a sacred issue , the public debts are not simplify written off , the powers that be don't really care about losing 0.0001% of their income by forgiving third world dept , they do care about maintaining confidence in the currency , and simplify writing off debt destroys the shared value of the money.
it is fascinating how money is a totally human creation , yet it morphs into some kind of autonomous agent that interacts with society in unpredictable manners.
Fascinating
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Deep13
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Tue Jun-29-10 01:28 PM
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1. "I am terrible at economics , a total stupido" |
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Edited on Tue Jun-29-10 01:49 PM by Deep13
Then you're perfect for the Cato Institute.
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DJ13
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Tue Jun-29-10 01:32 PM
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lumberjack_jeff
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Tue Jun-29-10 01:30 PM
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2. I would prefer you use different language. |
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and fwiw, the rules do too.
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RKP5637
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Tue Jun-29-10 01:31 PM
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3. And for many money is God and greed/ruthlessness is justified and rewarded |
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in a capitalistic system gone astray.
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Ozymanithrax
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Tue Jun-29-10 01:32 PM
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4. Consumerism and a Corporate command economy keeps liquidity in the system... |
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Corporations create goods we don't need. (This is the command economy part)
Marketing experts promote those goods and convince us that we need them, or that we can be just like the rich if we have them, or get laid more often...
Then they give us credit cards so we can monetize our earning potential through credit. We then max out our credit cards, putting that liquidity into the system and placing us at the eternal servitude to the banks.
That liquid currency is then dolled out to an investor class who provide the base capital to create more goods that we don't need and live the real lifestyles of the rich and famous.
Marketing experts create new add campaigns...
Banks give us more credit cards...
Every now and then there are corrections, when people go bankrupt and loose all that neat stuff.
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RKP5637
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Tue Jun-29-10 02:08 PM
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11. Excellent Summary and spot on IMO. n/t |
Lone_Star_Dem
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Tue Jun-29-10 01:34 PM
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6. You should edit your subject line to remove the offensive last word |
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Edited on Tue Jun-29-10 01:42 PM by Lone_Star_Dem
Please? It would be appreciated by many here. :hi:
On edit: Thank you! You're a champ!
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dipsydoodle
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Tue Jun-29-10 01:38 PM
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7. He's describing himself - not a 3rd party. |
Lone_Star_Dem
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Tue Jun-29-10 01:41 PM
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It's an offensive world used to imply someone is lesser. If your child was mentally challenged would you like to see such language tossed about in a derogatory way? It's insensitive and against the rules.
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Greyhound
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Tue Jun-29-10 01:42 PM
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9. Trial and error is opposite of what has been done, this situation has been the. |
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Holy Grail of banking since they cut Royalty in on the scheme hundreds of years ago.
Liquidity is indeed one of our major problems, but there is too much in too few hands, not a lack. We have arrived at a place where those that control the system have accumulated more than they can, or are willing, to use.
By separating currency from real value we have created more currency than there is value to back it.
The idea that "print(ing) money to provide it to people (banks as middle men) as debt with an interest rate attached to it" is a canard used to mask how it works. This is an example of what I call the "George Bailey" theory of economics.
"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." - Henry Ford
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UndertheOcean
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Tue Jun-29-10 01:54 PM
Response to Reply #9 |
10. Where do you start to understand the monetary system as it really is ? |
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without being saddled with an ideology ?
What books to read , standard cannon ?
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Greyhound
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Wed Jun-30-10 02:07 AM
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13. How much do you want to know? It gets immensely complicated (and immensely frustrating) |
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very quickly. http://www.youtube.com/watch?v=D0IJCGuNtqk&feature=PlayList&p=B3335CDA5C71722B&playnext_from=PL&index=0&playnext=1">Watch this video and maybe part two for a pretty simplified, yet accurate, overview. I expect that you will want to verify/disprove the information if it is new to you. Most of what you will get from both sides of this is 70% - 80% BS, but there is truth there.
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girl gone mad
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Wed Jun-30-10 04:31 AM
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14. I would suggest that you read up on chartalism. |
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A general accounting system for fiat money, with no political bias (that gets added in later by the theorists and politicians, who come from across the political spectrum). Read http://www.amazon.com/Stabilizing-Unstable-Economy-Hyman-Minsky/dp/0071592997">Minsky or http://www.amazon.com/Understanding-Modern-Money-Employment-Stability/dp/1845429419/ref=sr_1_1?ie=UTF8&s=books&qid=1277890062&sr=1-1">Wray. Another good introduction is http://moslereconomics.com/mandatory-readings/what-is-money">this piece by Mosler. There are also several good blogs which cover this topic on a daily basis. If you visit the economy forum, they are frequently cited. This is a worthy pursuit, imo. :)
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lumberjack_jeff
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Tue Jun-29-10 04:22 PM
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12. Thank you for the edit. |
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Have you seen the video "money as debt"?
The way the economic system evolved was neither obvious nor inevitable.
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DU
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Sat May 04th 2024, 08:00 PM
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