Stable Economy

Discussion in 'Economy' started by BillSPrestonEsq, Jan 1, 2013.

  1. BillSPrestonEsq
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    BillSPrestonEsq Rookie

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    I can't imagine a more stable economy that one that is based on these three rules:

    1. Currency is a number, a dollar, whatever. It is not backed by gold or silver or anything tangible.

    2. The number of dollars let's say, only changes with increases or decreases in population. For example the federal reserve could become a branch of the treasury that maintains the security, quality and quantity of paper money in circulation.

    3. Banks are required to hold 100% of their on demand accounts. You could still have savings in the form of cds or bonds but checking accounts would have to be held in the reserves.

    I don't think most people agree or even have thought about it. I think that it's the biggest mistake we can make to ignore the flaws of our current system. I think it is the root of most of our problems economically today. The ability for government to create money has historically turned out badly. I think that people have to talk about this more.
     
  2. georgephillip
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    georgephillip Gold Member Supporting Member

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    Do you see the money creation process in public or private hands?
     
  3. EdwardBaiamonte
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    EdwardBaiamonte Platinum Member

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    a little Econ 101 for you: with economic progress comes more GDP or more goods and services. Without a rising money supply you would have deflation and depression. These are bad things, but you have to have taken Econ 101 to know that.
     
  4. EdwardBaiamonte
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    EdwardBaiamonte Platinum Member

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    if you did that banks would have to charge you a fixed fee to cover their costs; the checking savings that is turned into investment would be diminished a great deal and then so would economic growth.

    More Econ 101 for you. The Depression was caused by bank runs, the Carter inflation was caused by too much money, and the current bubble and depression was caused by Fed Fan Fred CRA FHA HUD, etc etc all subverting the Republican free market to get people into homes the free market said they could not afford.

    IF we avoid these in the future, which is easy now that we have seen them, we'll be fine.
     
    Last edited: Jan 2, 2013
  5. usmcstinger
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    usmcstinger Gold Member

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    You are right. The problem is making sure that Congress and the President know this. There are too many members of Congress that do not understand basic economics. The Dems have no idea that they are supporting Keynesian Economics which is the President's Economic Plan.
     
  6. EdwardBaiamonte
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    EdwardBaiamonte Platinum Member

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    I think the heart of Keynes is here in his advice to FDR in 1934:

    "The object is to start the ball rolling[ with Federal spending to rehabilitate the railroads]. The United States[ in 1934] is ready to roll towards prosperity, if a good hard shove can be given in the next six months."-JM Keynes

    Keynes simply did not know at the time that libturd guessing about where temporary money ought to be spend was merely mal-investment and so not as good as individual people carefully spending their own hard earned money in sustainable ways.
     
    Last edited: Jan 2, 2013
  7. georgephillip
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    georgephillip Gold Member Supporting Member

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    "Americans are understandably upset about profits without prosperity. Corporate executives seem to be the big winners, while the middle class is declining and young people face a bleak economic future. How did this happen?

    "It's easy to blame technology, especially the automation that supposedly displaces workers. But that's not the real story.

    "The fact is that automation creates jobs.

    "It's the misuse of corporate profits that is destroying them."

    William Lazonick: Robots Don't Destroy Jobs; Rapacious Corporate Executives Do
     
  8. eflatminor
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    eflatminor Classical Liberal

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    Unless I'm missing something, that is a massive contradiction. If you understand that our never ending printing press is bad, which it is, then the answer is money backed by something real. Gold will do fine.
     
  9. georgephillip
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    georgephillip Gold Member Supporting Member

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    Who controls the gold...Rockefeller or Rothschild?
     
  10. uscitizen
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    uscitizen Senior Member

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    Me.
     

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