Debt money is fine if you manage it properly. Gold backed dollars are debt money, but the debt was payable in gold. Today's currency is partly backed by ephemeral financial instruments that nobody really understands.
Mises
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All money is used to pay debt, just gold backed (or money backed by anything tangible), is not created without the tangible asset there that it represents in the simplest form of an asset backed currency.
What we have now, or a fiat money, is money that is only created by being borrowed into existence, and so is said to be created 'out of thin air'. And since it is borrowed into existence, repayable only with interest, so the money supply must by necessity constantly grow to pay the interest on the money that has already been created.
It takes a while for most to grasp the concept but that is truly how money and by extension the economy works (or doesn't) today.
It is not that "currency is partly backed by ephemeral financial instruments that nobody really understands." Believe me there are plenty that understand this very well, Bernacke, Volkner, Greenspan, I'm sure are all crystal clear about how money is created.
What we have now, or a fiat money, is money that is only created by being borrowed into existence, and so is said to be created 'out of thin air'. And since it is borrowed into existence, repayable only with interest, so the money supply must by necessity constantly grow to pay the interest on the money that has already been created.
It takes a while for most to grasp the concept but that is truly how money and by extension the economy works (or doesn't) today.
It is not that "currency is partly backed by ephemeral financial instruments that nobody really understands." Believe me there are plenty that understand this very well, Bernacke, Volkner, Greenspan, I'm sure are all crystal clear about how money is created.
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Quote:
It takes a while for most to grasp the concept but that is truly how money and by extension the economy works (or doesn't) today.
This must be (in some way) some fundamental of the (alleged) requirement of the perpetually expanding economy. It's a race than can never end since you're perpetually extending the finish line into infinity.
Some how, this has all the appearance of an act of ultimate futility ...that functions in its dysfunction.
It takes a while for most to grasp the concept but that is truly how money and by extension the economy works (or doesn't) today.
This must be (in some way) some fundamental of the (alleged) requirement of the perpetually expanding economy. It's a race than can never end since you're perpetually extending the finish line into infinity.
Some how, this has all the appearance of an act of ultimate futility ...that functions in its dysfunction.
It's the cause of the perpetually expanding money supply which dilutes the value of all dollar assets, salaries etc. Nothing is wrong with the system itself. It is people, who usually mismanage it, who are flawed.
Originally Posted By: Gary Allan
..... It's a race than can never end since you're perpetually extending the finish line into infinity.
Some how, this has all the appearance of an act of ultimate futility ...that functions in its dysfunction.
At times like this, the only way out of your predicament is to get religion.
..... It's a race than can never end since you're perpetually extending the finish line into infinity.
Some how, this has all the appearance of an act of ultimate futility ...that functions in its dysfunction.
At times like this, the only way out of your predicament is to get religion.
Originally Posted By: oilyriser
Nothing is wrong with the system itself. It is people, who usually mismanage it, who are flawed.
I don't know, that is where Mises and the Austrian School would firmly disagree. The system is too complex to manage.
Nothing is wrong with the system itself. It is people, who usually mismanage it, who are flawed.
I don't know, that is where Mises and the Austrian School would firmly disagree. The system is too complex to manage.
Also, having that power is too corrupting.
The government's credibility as a debtor lies in its ability to create and sustain revenues. That is , its taxing/collection ability.
The U.S. government (and most governments) has basturdized (intended spelling error) its credibilty by creating money (printing it) as opposed to earning it.
I guess most people wanted 2 chickens in every pot as they were promised.
The U.S. government (and most governments) has basturdized (intended spelling error) its credibilty by creating money (printing it) as opposed to earning it.
I guess most people wanted 2 chickens in every pot as they were promised.
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Originally Posted By: rpn453
Originally Posted By: Pablo
In theory the economics of communism can almost be made to sound rational.
But the monkeysphere prevents it!
What is the Monkeysphere?
Entertaining read
he truth is, all of these monkey management schemes only go so far. For instance, today one in four Americans has some kind of mental illness, usually depression. One in four. Watch a basketball game. The odds are at least two of those people on the floor are mentally ill. Look around your house; if everybody else there seems okay, it's you.
Originally Posted By: Pablo
In theory the economics of communism can almost be made to sound rational.
But the monkeysphere prevents it!
What is the Monkeysphere?
Entertaining read
he truth is, all of these monkey management schemes only go so far. For instance, today one in four Americans has some kind of mental illness, usually depression. One in four. Watch a basketball game. The odds are at least two of those people on the floor are mentally ill. Look around your house; if everybody else there seems okay, it's you.
Originally Posted By: Gary Allan
Originally Posted By: rpn453
Originally Posted By: Pablo
In theory the economics of communism can almost be made to sound rational.
But the monkeysphere prevents it!
What is the Monkeysphere?
Entertaining read
he truth is, all of these monkey management schemes only go so far. For instance, today one in four Americans has some kind of mental illness, usually depression. One in four. Watch a basketball game. The odds are at least two of those people on the floor are mentally ill. Look around your house; if everybody else there seems okay, it's you.
Oh NO!!!
Originally Posted By: rpn453
Originally Posted By: Pablo
In theory the economics of communism can almost be made to sound rational.
But the monkeysphere prevents it!
What is the Monkeysphere?
Entertaining read
he truth is, all of these monkey management schemes only go so far. For instance, today one in four Americans has some kind of mental illness, usually depression. One in four. Watch a basketball game. The odds are at least two of those people on the floor are mentally ill. Look around your house; if everybody else there seems okay, it's you.
Oh NO!!!
My imaginary friend had to go into therapy last week after he started seeing real people.
I've been on mises for a while now.
There are some interesting audio files on there.
It's kind of funny how Rothbard wrote about some of what is happening over 40 years ago.
I love that site, I also spend a good bit of time on heritage.org
There are some interesting audio files on there.
It's kind of funny how Rothbard wrote about some of what is happening over 40 years ago.
I love that site, I also spend a good bit of time on heritage.org
Mises is a little hard to digest. Human Action was probably the easiest to read, but another Austrian Economist, Murray Rothbard, wrote a very good book titled, "Man, Economy, and State." It is similar to Human Action (and just as long), but IMO much better organized and easier to read for the layman (me).
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