20 Replies to “Money”

  2. I’ve got mixed feelings for this topic. Yes a modern economy is based on money created out of thin air “backed by the wealth of the nation”. But without that ability it would have been virtually impossible to fund the industry and creativity that has made the western world the colossus it is. And without debt most of us would own nothing. Has it gotten out of control, yes, but we have to be careful we don’t throw the baby out with the bath water.

    1. It should be noted that General Motors was founded 5 years before the Federal Reserve came into being.

    2. Pumping interest rates quickly is to crash the system as too many idiots have access to BIG MONEY and are creating unintended consequences by their actions and access to products that could really cause alot of devastation…oh, with an attitude…

    3. The idea that gold is somehow THE absolute measure of wealth is … is … barbaric. It’s downright medieval if not prehistoric. Why not platinum? Why not plutonium? If wealth and value are to be determined by a scarce element… then which element shall we choose? And if the population increases and needs increase … how inflated will the gold become, and what will that do to commerce. The “gold standard” is nonsensical in our complex world that demands BIG Finance to thrive.

      The rub comes when an unelected group of monolithic ideologues set monetary policy. For example … when a member of The Federal Reserve Bank demands that ALL finance support the WAR … no, not the WAR in Ukraine … but the WAR on climate change … then we have a serious problem. We have allowed diseased thinking into the monetary system. Yes … this policy will lead to mountains of skulls. Janet Yellen just might eclipse Joseph Stalin in total head count. She’s quite literally … INSANE!! Gone batshit crazy in her zeal to crush the Free Marketplace through monetary strangulation … through energy strangulation. It’s time for The People to elect The Fed.

      1. There is no good reason for gold – other than that of American influence, and their idea that they had quite a lot of it still in the ground. For a couple of thousand years before silver had been pretty much standard. It was a good choice, because it was pretty well distributed, and not as rare as gold (or platinum etc.). Which meant that it was possible to expand the money supply by putting some effort in and digging up more. With gold on the other hand, you just crippled the money supply if you wanted to maintain the artificial $35 per oz exchange rate. Changing it, would seriously annoy a lot of people. Which is what various countries actually did, by printing more paper than they had gold to back up.

        The correct answer would have been indentured servitude for the bankers responsible, working in the gold mines until they had produced enough physical gold to back their paper.

        As for electing the central reserve bankers … the absolute LAST thing you want to do is introduce politics into that system. Enough of that has already happened. It needs to be corrected – walls and bullets would be a good start. Same solution for anyone pushing digital currencies.

          2. You mean like *cough cough* … conservative Chief Justice Roberts? Wolves in Sheep’s clothing

  3. The invisible Hand.
    Thomas Soule on the Federal Reserve, (excerpt from an interview).

    “Now, in recent years we started to hear more people calling to get rid of the Federal Reserve. Good idea, bad idea? What are your thoughts?”

    “Good idea.” (Soule)

    “Good idea? What do you think we should replace it with? What do you think we should do?”

    “Well, it’s like when you remove a cancer, what do you replace it with?” (Soule)

    https://thefederalistpapers.org/us/thomas-sowell-brilliantly-answers-question-about-federal-reserve

  4. There are already multiple small organizations out there trying to create private members clubs and alternative currencies. A currency is whatever people trust to have value. I recall there was a point early in Canadian prehistory where a shortage of currency meant people were reduced to using playing cards with a special mark made by the French governor of the time. In Venezuela they use gold as currency. Tiny thin flat flakes of gold stamped buy a haircut for example. That’s what you replace it with. That won’r work on a large scale for big corporations but frankly, I could care less about them. They are part of what got us into this mess in the first place.

  6. Money is created out of thin air by value and the demand it creates.. This value can be real or perceived.. Government by it very nature can not bring value to the table.. Only parasitic user fees.. The free market is the Pied Piper while government are the rats that follow..

    Today.. Government and the welfare class have gotten so big that they figure they don’t need value anymore.. Just censorship to protect their bad ideas from Adolf Hitler.. I wish I was kidding.. I should be kidding.. But I’m not..

  7. Hmm, who do I trust less, a bunch of unelected business men or a bunch of unelected bureaucrats…

  8. And here I THOUGHT it was the Rothschilds that created fractional reserve lending..??

    The w biggest Monetary mistakes, Any US Presidents have ever made, were first & in order, Woodrow Wilson, in the selling off of the ability to print ones own money to the Federal Reserve & second, By Richard Nixon taking the country off the Gold Standard – both of which have brought us to this point.

  9. When a bank lends money it creates a liability because that money is going to be spent and it will end up in someone else’s bank account.

    i.e. ‘A’ borrows $100 from Bank X and gives it to ‘B’. ‘B’ deposits that money in Bank X who now has to pay interest on the money they just “created”. If B deposited the money in Bank Y instead then Bank X will now have to fork over the cash or pay interest to Bank Y.

    IOW – it is not “free” to create money with loans. Banks take a risk when they make a loan which is why banks that have too many bad loans go under. Banks can only make money if the loan interest paid exceeds the interbank lending rate set by the central bank.

  10. These are the key parts in his essay:

    “But by 1914, the Bank of England had already been involved in dodgy dealings, creating money out of nothing – and there were far more bank notes in circulation than there was gold in the vaults to honour them.

    The Bankers ran for help to the government and … people were offered a new kind of Treasury note – issued not by the bank but by HM Treasury … Because each was backed by the wealth of the nation, the familiar strap line … about a promise to pay the bearer on demand … was unnecessary and therefore absent entirely.

    The people accepted the Bradbury Pounds, trusted them on sight as cash they could see and hold and spend as they liked, with perfect confidence, and the banks were saved from certain collapse”

    He is describing EXACTLY what the coming CBDC’s will be – digital Bradbury Pounds…backed by “the GDP”, saves the banks, makes the dumb people happy and confident, and puts us under complete control.

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