OK, so, assuming that your system worked. Here is my fundamental question. By issuing fiat money, you have diluted the overall supply of money, taking it from other people via inflation. This is a given. Because the economy is a closed system, it can only be grown by labour that generates wealth. Printing of money does not create wealth.
So, with that in mind. Pray tell, what is the opportunity cost of your proposal, because I assure you there is one.
And what is the moral cost? Socialism breaks down family structures and morality, moving people from work, saving and local interdependence, towards speculation, gambling, and dependence on the state.
What are the financial and moral implications of your plan? How would your spending be any better than the spending of G.W Bush, Tony Blair, or anybody else? Giving you the power to print money, is that not a moral hazard that would be used by future leaders? What about your posterity?
A Credit system is Low interest rate federal LENDING to rebuild the Nation , so an example of a successful policy in regards to this similar to the Intercontinental Railway and TVA would be a Mag Lev as i mentioned.
You issue a contract that is BIDDED on by a multitude of companies with the ability to do something of this nature (Machine Tool Workers) and you LOAN them low interest sovereign credit (LENDING) to the tune of maybe 1% interest and lower.....
Now, in regards to the "Power to Print Money" the American System is run via Congress Approprations of Lending and Treasury Issuence of Credit.
So, the nation would be UNABLE to print money without labour being involved because all of the money printed would be directly invested into infrastructure projects, which directly represent the economy and population as opposed to gold.
In regards to "Socialism" , this is another false paradigm that was created by the powers that be and that is parroted by Austrians (I am not attacking you here), the Government building of Railways, Power plants and Water Treatment facilities is NOT Socialism.
Socialism (As opposed to what we have today, which is the fascist corporatist state) is when the Government Seizes Markets. AN example of actual socialism is Hugo Chavez seizing all of the oil companies in Venezuella.
The American System does no such thing - there is no preventative measures that restrict the private sector from doing what they please in regards to building infrastructure. But the reality of the situation is, as i have said, the Private Sector is bankrupt , unwilling and unable to build the basic neccessaties for an economy to function - so Federal Lending would be the only solution to prevent a thermo dynamic collapse (Meaning, the modern civilized economy would cease to function) of the Nation.
I would just like to add, that the word "Fiat" is such a Dogma these days because it is based on the assumption that "Currency is backed by nothing but the Federal Government's word" -
But if the system were overhauled to that of what we began with, and modernized , "Fiat" money would actually be representative of the Nations economic infrastructure and ability to produce , provide for transportation of , and sell to other nations , physical goods.
I would say that a Currency that is represented or valued per physical labour and a Nations economic output is far more valuable then Gold, which is indeed a piece of metal (Scarce or not) that is incapable of increasing a Nations ability to produce physical goods.
So, in conclusion you cannot put a value on currency (Via Gold), you can put a currency on a Value (The Value being the Economies ability for physical production highlighted by it's underlying infrastructure).
-Revolt 254
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In regards to this nonsense that i already disproved, the Government building infrastrucuture, as designated in the Constitution as "For the General Welfare of the people, is NOT SOCIALISM - SOCIALISM IS WHEN GOVERNMENT SEIZES MARKETS.
-Revolt 254
It's not just supply and demand.
It's regulation over the money supply.
There are tons of houses out there! Alot people would like them - but a Depression has been orchestrated by an Empire, based in London......
These actions have NOTHING to do with any such laws of supply and demand, because those laws do not take dynamics into interest.
Math is not Science, the Austrian school of economics does not take people into account or their minds. The Human mind must constantly update their infrastructure via science (New discoveries) as the population expands.
Putting a cap on this is equivelent to suicide of the race, but we need not go extinct because we are running out of Drinking Water.
There is a Scientific Solution that the private sector is currently unable to provide, which is De-Salination of Salt Water via Nuclear Power plants, which has been proven to work in numerous areas. This is one of many examples of how you must take the population into account in economics, not just laws and math.
-Revolt 254
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That is exactly why they must be regulated. Specifically, the Private Sector Financiers / Speculators. That doesn't mean that all Regulation is good, it means that parasitical regulation is necessary for any Freedom to be acheived.
What i find very disturbing is, (Not targetting you, because you are obviously aware of this), There are numerous people parroting Austrian Philosphies on the Forum and labeling them as the "Free Markets"......... and Austrian Fundamentals haven't the slightest thing to do with any freedom whatsoever.
Primarily their 2 pillars, which is Gold Must be used as a currency and All Government intervention/regulation is bad for the economy. In addition, they claim contractions of monetary supply are great because everything will just adjust and the dollar will strengthen (As if the markets had an invisible hand!) .......
However, They do not just adjust. People go bankrupt (Farmers foremost) and starve to death, this is precisely what happened in every real Depression in U.S. history - which is contraction of the monetary supply or "Deflation". Austrians would prefer 30% Deflation as opposed to 10% inflation....... because the word inflation is so frightening to them that they ignore what the word DEFLATION would do.
If anyone wishes to see what deflation does, i would suggest looking at the period from 1929 to march 1933 because it resulted in economic collapse , massive unemployment, starvation and breadlines....... the result as of FDR's Inauguration was, the United States banking system was no longer functioning.
As for the use of Gold as a currency, this is another tremendous problem that has nothing to do with "Free Markets". Infact, you will probably become a slave if Gold is used as a currency because there is NOT ENOUGH Gold to supliment the expanding population. This may not have been the case 400 years ago because we didn't have 6.8 Billion Human Beings on the planet.... However, as of now, if we were to enstate a domestic Gold Standard the resulting deflation would essentially bankrupt the nation , making all who weren't elitists slaves to creditors. For instance, think of all the people who now owe debt in the form of mortgages , commercial loans, auto loans, student loans, installment loans, credit card loans etc....
Now, if you enstated a Gold Standard and followed Austrian Contract rules, you would owe *Example* 100,000$ on a mortgage, and your weekly salary would drop from a higher sum (If you were lucky enough to get a job) and would be more like 100 dollars a week. I am sure you can see it would take your entire life to pay off 100,000 dollars and you would likely die before paying it off.
Other problems with the Gold Coin Standard consist of
A) The Gold does not represent the economic or population expansion rate
B) "Coin Clipping" was a serious problem when Coin standards were enstated
C) the elites control 80+% of the world Gold Supplies/Mines
D) Gold Standards make it impossible to recover from a Depression due to lack of or strangulation of currency to rebuild the Nation's infrastructure.
E) The very reason the Austrians say it works which is, "Scarcity" - is the very reason it doesn't work. If the economy is to expand, the monetary base must expand. If the economy is to recover from a Depression the monetary base must expand rapidly so long as it is issued into Productive Scientific Infrastructure that enables the Private Sector to Function. For Example, Without Clean Water, the Human race cannot survive - and since we are running out of Clean Water (For Drinking and Crop Irrigation) , we must develope things to produce clean water such as Nuclear De-Salination of Salt Water, which has been proven to work. This is one of many examples of required infrastructure for civilization to continue to function...... others include:
* Repairing and scientifically updating the collapsing Bridges, Roads , Railways which are needed for transportation of Human Beings and Productive Goods
* Developing new Power Plants (4th Gen. Nuclear and eventually Laser Fusion) to provide power to factories , farms and the like for production
* Mass Transit which is more efficient then cars since the Auto Sector is dead (For years atleast)
* + Any Scientific Creation by use of the Human Mind that would improve living standards and spurr the private sector
The point being, a Physical Economy is based on it's underlying infrastructure. And infrastructure is a Scientific Developement. When population expands, infrastructure must be updated to facilitate that population or you get poverty, and if neglected long enough, genocide. This is why Africa is still a third world continent..... do you see any railways in Africa? Water ways? Means of Power and Transport for any private sector to be able to produce and transport goods?......... We are heading towards that situation if we allow our basic economic infrastructure to collapse...... and if we do not modernize it to facilitate population levels we will not recover from this nightmarish economic meltdown (This is not a Depression , it is a systemic collapse, so we must take all statistical economics and toss them)
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Translation: anyone who doesn't worship at the feet of the almighty Austrian School is, by definition, an infidel who hates freedom and liberty!
Thanks for proving my point for me.
-geolibertarianism
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Thanks to over a century of relentless propaganda, the image of the Greenbacks comes down to us as worthless paper money. But upon more careful examination, on balance they were probably the best money system America has ever had....Demonstrating how far monetary history has been distorted, readers may be surprised to learn that every Greenback printed was ultimately as valuable as its gold equivalent, and became redeemable for gold coinage at full value. Today the Greenback supporters are erroneously presented as merely being pro-inflation or against sound money. What they really wanted was a more honest money system, controlled by government, instead of banks....
They [Greenbacks] were receivable for all dues and taxes to the U.S., except import duties, which still had to be paid in coin. The Greenbacks were payable for all claims against the U.S. except interest on bonds which was still payable in coin. The Greenbacks were declared a legal tender for all other debts, public and private....
Greenback critics argue that they were inflationary and mistakenly measure the inflation against gold, starting at equal to a gold dollar in early 1862, and falling to 36 cents against a gold dollar by mid 1864. So one gold dollar exchanged for nearly $2.50 in Greenbacks. That is often the whole of their analysis and it is very misleading. Actually the Greenbacks did drop against gold; first to 58 cents at the end of 1862, then back up to 82 cents in mid 1863 and then down to a brief low of 36 cents on July 16, 1864.
From that point they moved up steadily, averaging 39 cents for August; 45 cents for September; and 48 cents for October, 1864. They retreated to $0.44 in December, and averaged $0.68 for December 1865. From there they gradually rose to $1.00, at par with gold in December 1878. Greenbacks became freely convertible into gold, dollar for dollar, in January 1879....
Economists mistakenly argue that it was only because the Greenbacks were eventually made convertible into gold by law, that made them hold and increase their value. However, that law was a hard fought political struggle, dependent on the 1868 presidential election. The battle could have gone either way and the actual "resumption" law could not get passed by Congress until 1874, for implementation in 1879. This could not have kept the Greenback from further declines, and start moving it upward back in mid-1864.
What did occur in July 1864 was that our government put a limit of $450 million on the Greenbacks and from that month they started rising (i.e. gold began falling in terms of Greenbacks)....
While the Greenbacks lost substantial value for a period, the nation was engaged in the bloodiest war in its history, in which 13% of the population served in the armed forces and 625,000 died....Is it reasonable to expect that any government in those circumstances could completely protect its citizens from financial and other hardships?
[Economic historian Irwin] Unger has noted that:
"It is now clear that inflation would have occurred even without the Greenback issue."
And comparing a wartime inflation under a government run money system (the Civil War) to wartime inflation under a private banker run system (WW I), Civil War historian [J.G.] Randall wrote:
"The threat of inflation was more effectively curbed during the Civil War than during the First World War."....
The fact that the Greenbacks were not accepted for import duties may also have been an important negative factor against the currency:
"Hence it has been argued that the Greenback circulation issued in 1862 might have kept at par with gold if it, too, had been made receivable for all payments to the Government," wrote financial historian [Davis Rich] Dewey.
Also, if interest payments on government bonds had been paid in Greenbacks instead of gold, a large part of the demand for gold would have disappeared.
-- Stephen Zarlenga, The Lost Science of Money, pp. 453-65
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Your Opinion is wrong as shown by history, And might i ask - what destabalization tool did Lincoln "Bring about" ? . There was armed forces PRIOR to the Constitution being ratified, for the sole purpose of protecting us from the British. Abraham Lincoln protected the Union from being destroyed by the British with a Sovereign Currency, as the South was infiltraited with British Assets like Confederate General Albert Pike. This is another strawman arguement , because Lincoln did not bring any destbalization tool about - the Gold Standard, resulting in the de-industrialization of the South and dependence on Slave labor and free trade agreements with the British Empire caused De-Stabalization. Abraham Lincoln attempted to destroy those who wished to stomp out the United States Constitution and cut the Nation into pieces and was assassinated for it. Equating Abraham Lincoln with the British is like equating John F. Kennedy with George W. Bush. |
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Logged Your Opinion is wrong as shown by history, And might i ask - what destabalization tool did Lincoln "Bring about" ? . There was armed forces PRIOR to the Constitution being ratified, for the sole purpose of protecting us from the British. Abraham Lincoln protected the Union from being destroyed by the British with a Sovereign Currency, as the South was infiltraited with British Assets like Confederate General Albert Pike. This is another strawman arguement , because Lincoln did not bring any destbalization tool about - the Gold Standard, resulting in the de-industrialization of the South and dependence on Slave labor and free trade agreements with the British Empire caused De-Stabalization. Abraham Lincoln attempted to destroy those who wished to stomp out the United States Constitution and cut the Nation into pieces and was assassinated for it. Equating Abraham Lincoln with the British is like equating John F. Kennedy with George W. Bush. |
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