About The Money: "It's The Purchasing Power, Retard(?)!"

[mascale]

Former President Clinton will not likely carry loads of gold bullion into the hospital that recently opened up the blood flow channels that needed medical help. To pay the bill, the insurance company will likely use money, instead!

Oops(?)! Oh Dear(?)!

Money, Banking and Monetary Policy - Everyday Economics - FRB Dallas

Actually, Adam Smith is no longer relevant to the analysis of economies anymore. Karl Marx, in the "Communist Manifesto," had proposed a centralization of credit. The United States tried, but finally succeeded in the transformation of the United States in 1913. The link explains that. The Central Bank is even independent of Congress.

Even at Federal Reserve, value is about purchasing power. Adam Smith knew that systems based on making the rich richer, and the poor poorer: Would Fail. His market price model of supply and demand wouldn't work. Recently, the poor were unable to repay the mortgages, and the rich houses came tumbling on down. Congress did not send in truckloads of gold bullion to bail out the educated retards who ran the banks. Treasury Secretary Paulson opened up a line of credit, instead. That credit line was applied to the failures of the educated retards at even some manufacturing corporations. The ones that were solvent were still even then busy keeping the vehicles, going, and going, and going, without even a thought to coming to a stop!

The consumers had purchased the crap, and had left the gas guzzlers unpurchased, by comparison(?).

Socialist Sytems have their flaws, when the rich are allowed to get richer, and the poor are allowed to get poorer. The Soviet Bloc had to learn that, retardedly, and went out of business. The planet was allowed to see the showcase. There is social, political, and economic retardation, in addition to the medical condition creating retardation. In America, there is a political party, in the United States: Which combines them in one household, and puts it on display! There is a fringe faction which thinks of that as being Presidential Qualification.

Both the Soviet Bloc, the West, and the Westernizing Asians: Are now worldwide famous for manufacturing crap.

So at United States Federal Reserve, there is a vague recognition that money has value as purchasing power. Anyone sees that the "purchsing power" concept is not all that there is in explaining of the value of money.

Adam Smith knew that economies arranged such that the rich get richer, and the poor get poorer: Don't work. Assets became worthless, tied to the inability to generate purchasing power--but also based in the insufficient value of the assets. Now the assets are becoming valueable again, and even Ford Motor still knows to make a car that stops. . . .once it starts.

To buy those, the Central Credit mechanisms of the People's Republic of China have not been shipping over gold bullion. The Obama-Biden Administration created new purchasing power to replace the "clunkers," aka, the value-less crap. Gold bullion amounts were not sent to automobile dealers.

There was no need. The United States is a paper tiger. Beijing knows this, and bought.

In America, now: We have accounting. So there will be asset values.

"Crow, James Crow: Shaken, Not Stirred!"
(On lands of many nations: We now have Casinos, filled with squaws!)

 

[mascale]

Anyone can see how simple this becomes, from below, of mascale, in another thread. As opposed to any concept of a Widespread Wealth Worldwide, the Ivy League actually made a giant leap backwards: With Chinese money, and for a Negative Ten Year Plan(?)!

The Federal Debt Stabilizes The Private Sector Credit Market

--------------------------------------------------------------------------------

Stranger than "Fantasize-Along-With-FoxTvNews," is the actual accounting at the U.S. Federal Reserve. The Total U. S. Credit Market is about $55.0 tril. The New Federal Ceiling is only about 25% of that. U. S. Personal Income is about 23% of that.

Economies supportive of the concept, "The Rich Get Richer, and The Poor Get Poorer," throughout history all fail. Recently, the poor were unable to repay the mortgages, and the rich houses all came tumbling down. Personal Income itself did not crash, but the federal government propped up the financial, credit markets. The Preservative federal stimulus went to prop up the personal income accounts. Even China could buy the crap!

For credit to make any sense, there has to be accounting that keeps it valueable. Federal procurements, and personal income, provide the accounting that keeps the paper looking viable. Even China can create a credit market with it.

Undeveloped nations, with no credit markets, don't have the flexibility of failure: That the United States most recently experienced. The United States harbors a failed people, with critter-level, aborigine, faith and values. The United States credit market bailed them out.

The people in East Africa have no such flexibility. They Die. China is creating the infrastructure: Useful in the floods, and the famines, and the earthquakes--to keep people alive. The economy can function. China is set to flourish, and nations of the planet clearly Know that.

The U. S. federal deficit actually goes a lot further than analysts usually realize. The universities, such as the Political Science Department at Bloomington Campus, Indiana University, where Nobel Laureate Ostrom is supportive of them all--won't allow a presentation of said analysis, even in a graduate degree review committee. That was 35 years ago, and they all know it.

There had to be a basis formation model, and no presentation was permitted even then. Clearly: Teaching, or any such presentation, is clearly not possible--without the doctoral degree--unless it is believed that some kids are better than other kids, and that all the other kids are not worth the extra effort.

So the law is on their side. You cannot know, or make use of, the underlying basis arithmetic. All of the 7.0 mil. U. S. teachers are supportive of the law, and clearly of Indiana University, and clearly of the Nobel Committee.

My own people were friends with the President, Gerald Ford, and even the orginal Catholic President, John Kennedy. Other people have been able to find out about arithmetic, even though you can't do that in the schools! Our people settled in Penn's Colony, in 1683. We came to know some people, over the years, who also were not indigenous peoples. It's that hard to find anyone, even: Who do want to know arithmetic in America!

"Crow, James Crow: Shaken, Not Stirred!"
(Her Majesty's PM, actually, would himself find this all a bit advanced--unless he knows someone!)