I would agree with that statement except for the fact that we're dealing with the largest financial bubble of history, and I'm not directly referring to the stock market. According to my link below, we're also dealing with a quadrillion dollar derivatives bubble. Derivatives are financial instruments that have no intrinsic value but derive their value from something else. Basically, they are just bets. For some perspective, $1 Quadrillion is 100 times greater than our $10.1 Trillion national debt. Maybe we'll make a killing if the bubble keeps growing, but what happens if the bubble resting on this house of cards pops?<a class="user" href="http://www.webofdebt.com/articles/its_the_derivatives.php">http://www.webofdebt.com/articles/its_the_derivati ...</a>
The war was used to pump more money into the system. Search Money as Debt on youtube. We're at a point that we owe so much, and interest is so much we need to borrow a lot more to cover our costs plus our interest. It's why our banking and monetary system sucks. It's a pyramid scheme for a very very very few.
I'm sorry, you are exactly wrong.Interest rates were kept low in order to add "liquidity", just like now.Price fixing was put in place, to prevent falling prices. The problem being that falling prices is a symptom of a monetary contraction, not a cause. So holding prices high (which they are trying to do again) is like stapling your eyes shut to make sure the sun doesn't shine.Deflation is a normal response. This is a monetary contraction because of fractional reserve banking. Now that the loans are going bad, the illusionary "inflation" of the money supply is shown for the illusion it is, and there comes a "deflation" which is merely a re-adjustment of the books to show the real quantity of money.How are you going to not "allow" that to happen? There is only one way and that is to print money like crazy in order to try to fill all the holes. That makes the dollar worth even less, very quickly. It's called "hyperinflation".Look at those "depressions" where the government did nothing: 1836, 1907, 1921. They lasted 6 months to 1 year, prices dropped very fast as resources were realocated quickly, and people got on with their lives.Now take a good hard look at 1929-1946, where the government did all those things you are advocating: Misery, starvation, death, massive and prolonged unemployment.Thank you very much, I'll take deflation any day, over the hell of "intervention".Read some Rothbard, "America's Great Depression", and learn something.
They don't want to face it, because they caused it.The cold hard fact is that this bubble was caused by manipulation of the banking system and the Federal Reserve.Abolish the Federal Reserve, eliminate the protectionist crap that props up bad banking practices. Get government entirely out of banking.
"But with respect to future debt; would it not be wise and just for that nation to declare in the constitution they are forming that neither the legislature, nor the nation itself can validly contract more debt, than they may pay within their own age, or within the term of 19 years."Thomas Jefferson, September 6, 1789
brad3378Oct 5, 2008
I would agree with that statement except for the fact that we're dealing with the largest financial bubble of history, and I'm not directly referring to the stock market. According to my link below, we're also dealing with a quadrillion dollar derivatives bubble. Derivatives are financial instruments that have no intrinsic value but derive their value from something else. Basically, they are just bets. For some perspective, $1 Quadrillion is 100 times greater than our $10.1 Trillion national debt. Maybe we'll make a killing if the bubble keeps growing, but what happens if the bubble resting on this house of cards pops?<a class="user" href="http://www.webofdebt.com/articles/its_the_derivatives.php">http://www.webofdebt.com/articles/its_the_derivati ...</a>
schmichOct 6, 2008
He should have said "The Govt. is throwing dollar bills on the fire"
akhomesteadOct 7, 2008
The war was used to pump more money into the system. Search Money as Debt on youtube. We're at a point that we owe so much, and interest is so much we need to borrow a lot more to cover our costs plus our interest. It's why our banking and monetary system sucks. It's a pyramid scheme for a very very very few.
curthowlandOct 7, 2008
I'm sorry, you are exactly wrong.Interest rates were kept low in order to add "liquidity", just like now.Price fixing was put in place, to prevent falling prices. The problem being that falling prices is a symptom of a monetary contraction, not a cause. So holding prices high (which they are trying to do again) is like stapling your eyes shut to make sure the sun doesn't shine.Deflation is a normal response. This is a monetary contraction because of fractional reserve banking. Now that the loans are going bad, the illusionary "inflation" of the money supply is shown for the illusion it is, and there comes a "deflation" which is merely a re-adjustment of the books to show the real quantity of money.How are you going to not "allow" that to happen? There is only one way and that is to print money like crazy in order to try to fill all the holes. That makes the dollar worth even less, very quickly. It's called "hyperinflation".Look at those "depressions" where the government did nothing: 1836, 1907, 1921. They lasted 6 months to 1 year, prices dropped very fast as resources were realocated quickly, and people got on with their lives.Now take a good hard look at 1929-1946, where the government did all those things you are advocating: Misery, starvation, death, massive and prolonged unemployment.Thank you very much, I'll take deflation any day, over the hell of "intervention".Read some Rothbard, "America's Great Depression", and learn something.
curthowlandOct 7, 2008
They don't want to face it, because they caused it.The cold hard fact is that this bubble was caused by manipulation of the banking system and the Federal Reserve.Abolish the Federal Reserve, eliminate the protectionist crap that props up bad banking practices. Get government entirely out of banking.
Closed AccountOct 8, 2008
"But with respect to future debt; would it not be wise and just for that nation to declare in the constitution they are forming that neither the legislature, nor the nation itself can validly contract more debt, than they may pay within their own age, or within the term of 19 years."Thomas Jefferson, September 6, 1789
coolhandluke70Oct 22, 2008
Schiff is a good man!