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David Charles's avatar

It really kinda is that simple, people.

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Frank's avatar

In Praise of Private Banks Owning Your Economy might have been a better title.

People like Keynesian economics because they don't know any better.

Nothing like destroying capital to create wealthier societies, like WWII.

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Mystic William's avatar

The Canadian Central Bank and the US Fed are being badly mismanaged. The system is not at fault. It is how the system has been run since Greenspan.

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Rightful Freedom's avatar

Gold is not the only alternative to Keynes or MMT. The essay is correct.

What is blocking our developing and having a strong, effective money system? The answer in the essay is 100% right: The problem is government and government control of the money system.

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Mystic William's avatar

I've read Keynes, but a long time ago. I don't think fiat money was his thing. He thought that the government can print money and pass it out willy nilly and it will result in wealth. Two things about that. 1. It might have been sort of true when he wrote it. 2. It might be sort of true if the dollars are spent locally, and everything you buy is made locally. In those days an economy could freeze. We can't anymore. Putting some liquidity into a frozen economy might have been temporarily okay. And, if the government hands out $10M and all that money instantly goes to China buying cheap stuff, then no, it did nothing for the economy. If everyone only buys locally MADE goods then an extra $10M might circulate around 7 or 8 times (before taxation has scooped it all back into treasury). That doesn't happen now. Give 100,000 families an extra $1000 and that Hundred Million is likely out of the country in one or two purchases.

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James D Teel II's avatar

Very well explained so most everyone can understand. It’s easy to blame the fiat currency as the problem when you don’t actually understand how things work.

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Mystic William's avatar

I disagree with modern economists. Inflation is not the enemy. When a society changes rapidly, for the better especially, some inflation is needed. When society changes many many business decisions become invalidated. No inflation and there is no cushion for firms to adjust. 2% IMO is too low. 3-4% is needed for times of rapid change. Inflation though means more fiat money.

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DE's avatar

Untenable delusion.

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Mystic William's avatar

Why?

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