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pkpapers (November 30, 1999 at 12:00 am)
We have all been lied to by the universities. If you'd like to very quickly deprogramme yourself from Marxist feminist FAKE history read the brand new and utterly surprising article "Setting the Record Straight" by Robert St. Estephe. (easy to find on google) Based on new research. You will be gobsmacked!!!
Sm3rti (November 30, 1999 at 12:00 am)
@TheBalancedAmerican
Service based employees benefit from increases in production, because they can afford more, when prices in other industries fall. When prices in the production industries fall and the consumers do not raise their effective demand (=in real terms) in the same proportion, they will spare money, which they then can spend on "services". According to this shift in effective demand, jobs will be relocated from the production industriesto the service industries
Sm3rti (November 30, 1999 at 12:00 am)
@TheBalancedAmerican
Fiat money systems have never produced a stable currency. And the ups and downs of the subjective value attributed to the existing money, you appear being so much afraid of, originally stem from the perception that the central bank can arbitrarily manipulate the money supply to any extent and to any time. You view only works in economic textbooks. Whenever there is the opportunity to print money, money will be printed.
Sm3rti (November 30, 1999 at 12:00 am)
@TheBalancedAmerican
People don not have to understand investing. All what they need is to prefer 3% a year to 1% a year. Banks will take their money and invest it on their behalf. And since they are doing business in an stable money (and non fractional reserve) environment, there is no risk of bank runs.
I understand your argument, but the monetary regime you are defending contributes precisely to this kind of problem (of uncertainty and deflation) you are trying to avoid.
Sm3rti (November 30, 1999 at 12:00 am)
@TheBalancedAmerican
And you do not make your argument stronger by telling lies either.
The Austrians definetly do not agree that a gold standard deflation causes hoarding. In a gold regime, people will rather invest their money than just waiting for price decreases to come, because in this way they benefit from interest rates AND price decreases. Until now you could not dismiss this argument.
Sm3rti (November 30, 1999 at 12:00 am)
@TheBalancedAmerican
The value of a limited resource (gold) is "subjective", whereas the value of an unlimited resource (papermoney) is objective. Totally makes sense, really...
The dollar is stable (lol?), because he represents all products and services. But how, then, could the dollar price of gold fluctuate? I guess gold does not count as "product and services" in your terminology, right?
tjtomkins (November 30, 1999 at 12:00 am)
@cbasallie
"Right again. How could a ''rules - based '' anything work when it is a few people who arbitrarily make and change the rules. Man made rules which serve the men who make the rules?? I vote no."
:)
Yes, it'd be foolish of us to think that we can hand over the money-monopoly to politicians, "economic experts" or whomever & hope that they won't exploit that power
The best thing would be market-based free-market money :)
tjtomkins (November 30, 1999 at 12:00 am)
@emetts2112
Government CREATED Fed in the first place & they can eliminate it but they don't because it allows them to promise warfare & welfare to get votes & then they fund these misadventures with debt which Fed can monetize & inflate, without Fed, govt would be hamstrung
And NO, Treasury doesn't "pay" interest to Fed as such because Fed hands over its "profits" BACK TO TREASURY, which include interest "paid" by Treasury + interest earned by Fed on loans to other banks, etc
tjtomkins (November 30, 1999 at 12:00 am)
@TheBalancedAmerican
I'd highly recommend you (& everyone here) to read Carl Menger on how "money" EVOLVES out of pure barter, what "money" comes into being & how it's only the "most maketable commodity"
His writings clearly knock "money" off its economic pedestal & show us that "money" is NOT some special thing but just another product of the markets, so we don't need magnanimous angelic central-planners "taking care of" it anymore than any other product out there
tjtomkins (November 30, 1999 at 12:00 am)
@TheBalancedAmerican
"I respect your desire to return to a barter based exchange system"
Calling gold-standard (or any free-market commodity-standard) "barter" is ridiculous, by that token, paper-money is "barter" too
"Money" is ANYTHING that's exchanged, not necessarily for its own use but to exchange it for OTHER goods/services
Just like when seashells were used as money by some, it wasn't necessarily because they wanted seashells but to exchange them for OTHER goods/serv |
