U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 03-10-2018, 04:53 PM
 
Location: Cebu, Philippines
2,170 posts, read 797,279 times
Reputation: 4348

Advertisements

Quote:
Originally Posted by 2nd trick op View Post
Entrepreneurs don't "create money" -- they create wealth; money is simply an embodiment (physical or perceived) of that wealth. And the wealth arises when an entrepreneur (correctly) anticipate somebody's wants (the larger or the more of them, the better for all of us).

Bill Gates and Jeff Bezos are both examples of this; but the same holds for anyone who starts a successful small business in a smaller community.

The reward for all of them is to be vilified by the multitude of misfits and losers, and the politicians who pander to their resentments.
The problem is that the existence of the wealthy predicates that there BE "a multitude of . . . losers", who thereby are equated by you with "misfits", and vilified accordingly. The core value of our current socio-economic paradigm. What a shame that politicians are elected by the majority, instead of by the wealthy, who deserve to appoint them.
Reply With Quote Quick reply to this message

 
Old 03-10-2018, 05:34 PM
 
3,342 posts, read 922,918 times
Reputation: 2571
Maybe the OP is talking about the central bankers. They can create as much money as they want, and give it to whoever they want.

After 2008 the Fed decided to buy toxic mortgage assets from banks, for example. This was supposedly to save the economy. But it must have done wonders for all those banks who had stupidly bought worthless derivatives.

People see this as the Fed managing the economy and making sure we're all safe and happy. We are stupid to trust them.
Reply With Quote Quick reply to this message
 
Old 03-10-2018, 05:56 PM
 
Location: Myrtle Creek, Oregon
11,048 posts, read 11,455,634 times
Reputation: 17206
The Fed has to print $500 billion a year just to fund our trade deficit. Any less and the money would drain out of the US economy, leading to deflation. Create too much money and we end up with inflation. In theory, the amount of money in circulation should increase in lock step with growth in the economy. In practice, most of the new money goes into fixed asset acquisition, so the Fed can create money way faster than the economy is growing.
Reply With Quote Quick reply to this message
 
Old 03-10-2018, 05:58 PM
 
1,040 posts, read 542,232 times
Reputation: 1609
Quote:
Originally Posted by TimAZ View Post
In modern banking systems debt is equivalent to "money". Creating debt and the machinations that accompany its journey into money is certainly the source of income for many of the wealthiest among us. To hear their side of it, they are "doing God's work around the world every day", some may take a dimmer view...
Well that's perfectly true if they think they're God.
Reply With Quote Quick reply to this message
 
Old 03-10-2018, 06:05 PM
 
Location: Myrtle Creek, Oregon
11,048 posts, read 11,455,634 times
Reputation: 17206
Quote:
Originally Posted by 2nd trick op View Post
Entrepreneurs don't "create money" -- they create wealth; money is simply an embodiment (physical or perceived) of that wealth. And the wealth arises when an entrepreneur (correctly) anticipate somebody's wants (the larger or the more of them, the better for all of us).

Bill Gates and Jeff Bezos are both examples of this; but the same holds for anyone who starts a successful small business in a smaller community.

The reward for all of them is to be vilified by the multitude of misfits and losers, and the politicians who pander to their resentments.
It's nice to find someone who understands that money is not wealth. Productive industries create new wealth. Building a home is creating new wealth. The creation of wealth can be as tiny as planting a few seeds in some flower pots, or as large as building a new 100 megawatt power plant.

I don't see that entrepreneurs and business creators get vilified. They are generally admired. It's the leeches who feed off of what someone else created who get vilified, and rightly so. There is a vast gulf between those who create wealth and those who inherit wealth.
Reply With Quote Quick reply to this message
 
Old 03-10-2018, 06:13 PM
 
8,282 posts, read 3,454,476 times
Reputation: 1584
Quote:
Originally Posted by Larry Caldwell View Post
The Fed has to print $500 billion a year just to fund our trade deficit. Any less and the money would drain out of the US economy, leading to deflation. Create too much money and we end up with inflation. In theory, the amount of money in circulation should increase in lock step with growth in the economy. In practice, most of the new money goes into fixed asset acquisition, so the Fed can create money way faster than the economy is growing.
The Fed isn't creating money these days, in fact unwinding QE is about the opposite. The $500B is through Congress and deficit spending.
Reply With Quote Quick reply to this message
 
Old 03-10-2018, 06:19 PM
 
Location: Prepperland
13,116 posts, read 9,202,467 times
Reputation: 8988
Pursuant to /american/ law, congress can COIN money (stamp bullion) or BORROW money.
It cannot 'create' bullion, hence it cannot create money.
Currency (federal reserve notes) are repudiated IOUs denominated in dollars (coin) but are not redeemable since 1933. Ergo, they're worthless (no par value).

THOSE WHO ARE EXTENDING CREDIT AT USURY ARE GETTING FILTHY RICH.
But you already knew that.
Reply With Quote Quick reply to this message
 
Old 03-10-2018, 06:23 PM
 
Location: Prepperland
13,116 posts, read 9,202,467 times
Reputation: 8988
Quote:
Originally Posted by jetgraphics View Post
Pursuant to /american/ law, congress can COIN money (stamp bullion) or BORROW money.
It cannot 'create' bullion, hence it cannot create money.
Currency (federal reserve notes) are repudiated IOUs denominated in dollars (coin) but are not redeemable since 1933. Ergo, they're worthless (no par value).

THOSE WHO ARE EXTENDING CREDIT AT USURY ARE GETTING FILTHY RICH.
But you already knew that.
Ironically, those worthless IOUs are underwritten by 320 million "contributors" via FICA. {Voluntary servitude}
If ever a substantial number of people withdrew from FICA, the federal reserve notes will no longer be fungible.
Overnight, billionaires become zero-aires.
The usurer / socialist alliance will collapse.
Outside of barter, trade will cease until a new medium of exchange is agreed upon.
Fun, fun, fun.
Reply With Quote Quick reply to this message
 
Old 03-10-2018, 06:32 PM
 
Location: Myrtle Creek, Oregon
11,048 posts, read 11,455,634 times
Reputation: 17206
Quote:
Originally Posted by Hoonose View Post
The Fed isn't creating money these days, in fact unwinding QE is about the opposite. The $500B is through Congress and deficit spending.
Congress cannot create money. The reason deficit spending adds to the debt is that they have to borrow the deficit from someone. That can be offshore money, or money created by the Fed.
Reply With Quote Quick reply to this message
 
Old 03-10-2018, 09:08 PM
 
8,282 posts, read 3,454,476 times
Reputation: 1584
Quote:
Originally Posted by jetgraphics View Post
Pursuant to /american/ law, congress can COIN money (stamp bullion) or BORROW money.
It cannot 'create' bullion, hence it cannot create money.
Currency (federal reserve notes) are repudiated IOUs denominated in dollars (coin) but are not redeemable since 1933. Ergo, they're worthless (no par value).

THOSE WHO ARE EXTENDING CREDIT AT USURY ARE GETTING FILTHY RICH.
But you already knew that.
Coins are done by the Treasury, part of the Executive branch.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top