← Autodidact Archive · Original Dissent · Blond Knight
Thread ID: 14206 | Posts: 4 | Started: 2004-06-15
2004-06-15 23:21 | User Profile
[url]http://www.realnews247.com/money_myth_exploded.htm[/url]
2004-06-21 20:39 | User Profile
"Money gets its value, not from gold but from the products which that money buys."
Simply put, money should be a sort of accountancy, credits passing from one account to another according to purchases and sales. The sum total of money will depend upon the sum total of production.
"Each time production increases there is a corresponding increase in the amount of money. Never at any time should interest be paid on new money. Progress is marked, not by an increase in the public debt, but by the issuance of an equal dividend to each individual ... Prices are adjusted to the general purchasing power by a coefficient of prices. Social Credit . . ."
Money is nothing more than that commodity that became the most marketable commodity out of all other commodities. Gold and silver became money thousands of years ago because, after thousands of years of barter, they best served all the attributes of money -- durability, fungibility, easily divisable, etc.
The money commodity is unlike all other commodities. Once a commodity becomes money, it serves no social benefit to increase the supply of it. I will prove that increasing the supply of money, other than by mining for gold or silver, is harmful to the economy. This will take more time than I have right now.
Money is not a sort of accountancy. Real money is an actual commodity that is traded in the marketplace.
The money created in the linked story is fiat money that can and will be created by the same type of governmental bureaucrats that desptroyed our banking system in the first place.
My last comment is on this statement made in the story:
"Prices are adjusted to the general purchasing power by a coefficient of prices. Social Credit"
This is all too funny. The same bureacrats who could not balance a budget or figure out the price index wihout readjusting it later for the last 50 years is going to tell you and I what we earned this past week?
If any of you think the ideas in this story are worth pursuing than you deserve to lose all of your wealth.
Finally, how many of you are aware that the money system described is a type of money system that was tried in Communist countries!
There are better explainations and ideas out there, don't fall for this one.
2004-06-22 00:40 | User Profile
That story is one of those things that looks so stupid that it makes me feel like I must be missing something.
Social Credit: "If someone needs money to expand production, we issue him the necessary amount of new credit. Once he has sold his products he repays the sum to the credit fund. The same with public works; paid for by new credit."
Beyond the obfuscation, this basically means instead of borrowing money, the government will just print all the money it or anyone wants. Thus, the money or credits will instantly become worthless the moment any country adopts this Social Credit. The economy will instantly crash. What am I missing?
Even aside from the Social Credit thing, the story is still stupid. Let's just say a banker arrived on the island and loaned the five stranded men a total of $1000. First, the men are morons to agree to an astronomical 8% interest rate in a fix-money economy. Such an economy would be deflationary because the same number of dollars would reflect a more productive economy. Thus, a zero-interest rate loan would be repaid with dollars that are worth more. Any interest on top of that is just usury.
But, let's say the men agreed to the 8% interest rate. At the end of the year they could pay back the $1080 because the banker would need his own spending cash and thus the total pot would be $1200, or however much more money the banker printed for himself. The banker's money would flow from him, the unproductive one, to the productive ones. Then the five men would have the $1080 to pay back. The more money the banker printed for himself, the easier it will be for the other men to pay back their loans because the more dollars the five men will have.
Besides, the thing that made the banker in the story the evil guy is that he practiced Social Credit. He simply printed however much money the men wanted (the barrel of alleged gold is just an obfuscation).
In real life, the way a money system might get going on an island is that I trade firewood for a chicken, but you don't have a chicken so you give me an IOU. I go to the next guy to have my tools sharpened and pay him with your chicken IOU. Voila, the IOU is now money.
If I need more money than I have, I'll borrow it. By borrowing, instead of printing, the money maintains its value. And, if I want to do something stupid with the borrowed money, hopefully no one will let me borrow the money for fear that I cannot pay it back. Thus, the system has checks and balances.
The problem now isn't a bad economic system. It's simply a problem of too much government. That includes the government practicing a little Social Credit on its own and printing new money.
2004-06-25 13:05 | User Profile
Check out this link:[url]http://biblebelievers.org.au/usury.htm[/url]