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Wrong... new thoughts are not always right. Life was more fun before internet and cell phones. All they did was speed things up, but who likes being in a hurry?
are you joking? new technology in farming has made it so food can be produced for every single person in the world (even though it isnt distributed equally) without it, billions of people would starve. the internet has made communication in every single form faster. better for business, general life ect.
life was more fun before the internet and cellphone?? you mean like before the cold war? as in WW2 and ww1.. or are you talking about the massive famine, disease and overall instability of the world on a general basis?
did i say "new thought" is always 'right or better". new technology certainly is. look at medecine for example. would you be alive if it werent for that?
Quote:
Originally Posted by Huckleberry3911948
most certainly yes. but with a much much smaller economy. france has done it for years.
france also has massive unemployment and large amounts of crime (compared to canada). despite being more socialist
are you joking? new technology in farming has made it so food can be produced for every single person in the world (even though it isnt distributed equally) without it, billions of people would starve.
True but it's not sustainable because of reliance on petroleum and how it destroys the soil, and won't last; eventually, the die off will be far worse than if it (modern agriculture) hadn't been created in the first place.
The Credit bubble is 64 years old...Well it's older...but the last one in the USA reached maximum potential in 1929 and began imploding or inflating less than previous inflation to maximum potential down to 1944-1950...
Once maximum potential was reached the credit began to inflate greater than previous inflation following the the compound interest equation.
"The actual process of money creation takes place in commercial banks. As noted earlier, demand liabilities of commercial banks are money."--Federal Reserve Bank of Chicago, Modern Money Mechanics, p.3
The FEDERAL RESERVE did not exist prior to 1913...But Commercial banks did...
And Credit is not actually money...it's credit...but since it does everything that money does...It's money...The only difference between it and actual money is it's issued (created) by commercial banks when a consumer requests a commercial bank to loan them money...So it starts out as debt owed from the moment of creation...Other forms of money start out debt free and need to be aquired by a lender and have interest attached and then lent out in order for the money to undergo transformation into debt...
So Credit is money and it's also debt.
Every country (economic zone) on Earth has a Credit system and a credit "bubble" since The growth of the bubble is mostly driven by the compounding interest equation at the core of all the accounting algorithms within the compounding interest commercial banking credit system.
But I just look at the USA's...Why?
Because the FEDERAL RESERVE keeps track of the total credit market debt (the amount of debt/credit/money in circulation) and releases the data every quarter.
Also
"730 delegates from all 44 Allied nations gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire, United States, for the United Nations Monetary and Financial Conference. The delegates deliberated upon and signed the Bretton Woods Agreements during the first three weeks of July 1944."
"The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states. The Bretton Woods system was the first example of a fully negotiated monetary order intended to govern monetary relations among independent nation-states."(Economic zones)
It started out by making the US Dollar the Global trade medium of exchange...Fixed to Gold at $35 an ounce and all the other currencies of the world were fixed in price in relation to the US Dollar...The Japanese Yen was fixed in 1949 to be 360 per 1 US dollar and that held until 1971...when the rules of the Bretton Woods game were changed.
Well Bretton Woods made the US Dollar the global trade medium of exchange.
By default it made.
The US consumer the demand of the goods and services of the Global system
The USA the supply of inflation and US consumers the supply of US Dollars.
While the rest of the world became the supply of goods and services for US consumers, The demand for US dollars, and for Inflation.
Because the world at the end of the 1933-1945 bankruptcy reorganization of the previous Global system Based in the British Pound stirling was severely damaged...Europe and most of SE Asia were reduced to smoldering ruin piles.
Well in order for all these economic zones to inflate out of the massive deflation they suffered from...they needed millions of tons of raw materials and finished goods.
from the Global market...and in order to purchase anything off the global market...you need US Dollars...according to the Bretton woods global trade game that everyone agreed to play in 1944
Ok where do US Dollars come from?
"The actual process of money creation takes place in commercial banks. As noted earlier, demand liabilities of commercial banks are money."--Federal Reserve Bank of Chicago, Modern Money Mechanics, p.3
A US consumer requests a commercial bank to advance them x amount of future income using their current income or assets as collateral backing the request.
US consumers request commercial banks to manufacture money.
Lets say to buy a house...a cheap one back then...lats say $5,000...well the bank creates an asset of $5,000 and a liability of $5,000 and attaches interest to the asset and gives it to the consumer...
As the consumer pays off the debt...the asset and liability shrink by the principal amount and the bank keeps the interst as profit...
So the money created and spent into circulation eventually returns to where it came from over time as it's paid off.
It's why the banks like amortization...Because at the start the principal repayment is small compared to the interest payment...and teh economy like it because the mone ycreated circulates for decades.
But anyways...the source of US Dollars...are US consumers...So then if you need US Dollars you need to sell something to the US consumers that they need...or want.
So at the end of the bankruptcy reorganization of world in 1945 massive amounts of raw materials began flooding into the USA at firesale prices...
The world inflated out of the deflation or climax of the 1933-1945 bankruptcy reorganization of the world called world war two very quickly...by the late 1950's the world was basiclly rebuilt
But the USA was dependant upon massive imports of cheap raw materials while the World was dependant upon massive exports of US dollars...but with the world rebuilt...the other economies were as well...So the inreased demand began bidding up the prices of raw materials as the rest of the world inflated more.
Turning the US Trade surplus into a trade deficit and causing the pricing of goods and services in the USA to rise...
No problem...trade deficit?
The USA had lots of gold to balance trade.
According to the Bretton Woods rules US Dollar reserves that piled up in forign central banks due to a trade imbalance could be used to buy Gold from the USA in order to balance trade...
At the start very little gold was changing hands but over time the prices and amount consumed of raw materials continued to rise so the amount of gold needed to balance trade was increasing...Past the point at which the USA actually produced Gold and so by the early 1960's the USA was basiclly hemoraging Gold and the price of silver was bid up so high that the US treasury had to replace all the silver coinage with coinage of cheaper metals so it would not stop circulating/be melted down...and by 1971...The USA was forced to close the gold window and the rules of the Bretton Woods systam had to be changed.
Because according the the rules...Once the USA ran out of Gold...All trade into the USA would have slowed then stopped and then the USA along with the rest of the world would have imploded to oblivion...and nobody wanted the world to implode...Well the USSR maybe.
The rules were changed so that the US Dollar floated against Gold on the open market and all the rest of the currencies floated against the US Dollar on the open market...Then to balance trade the US Dollar reserves could sit or could be exchanegd for US Treasuries...
But the USA was still hyperinflating...It took until the early 1980's for the USA with the help of the authorities to stop the Hyperinflation...by exporting the US manufacturing sector out of the USA...The first place the manufacturing sector was exported to was Japan...which then rapidly inflated to maximum potential and collapsed by the early 1990's...The other location that began accepting massive imports of US consumer debt inflaton...Was the country that Nixon and Kissinger visited in 1972...China.
As the 1980's progresed...The manufacturing sector deflated but the growth rate of the money supply did not and there was very little wage and price inflation in the USA anymore...
If what was done in 1971 was not...Global trade would have stopped and the USA along with the rest of the world would have imploded to oblivion and if the controled destruction of the USA policy would not have been implemented after that...The USA would have hyperinflated and imploded to oblivion sometime in the late 1980's taking the rest of the world up with the USA and then down with the USA into a hyperdeflationary implosion.
Since basiclly 1990 to now the USA and Japan have been combined and have supplied the world with all the money the world needs to keep inflating....
Once final problem...The US consumer...They have a maximum potential ability to use their current income as collateral to back their requests for new money to be manufactured by commercial banks...
Once they max out and either become unwilling or unable to request commercial banks to manufacture the required amount of new money to service the continued existance of the previously manufactured money...that's it...game over.
The Supply of US Dollars slows and then stops...the supply of inflation the rest of the global system demands...slows and then stops...
The USA along with the rest of the world slows then stops or hits maximum potential inflation greater than previous inflation and then begins inflating less than previous inflation to maximum potential.
The USA along with world...implodes...poof.
Which is what you see happening currently...Sub prime mortages and Wall street corruption are effects...of the cause...The cause which is US consumers maxing out and either becoming unwilling or unable to request commercial banks to manufacture the required amount of new money to service the continued existance of the previously manufactured money and the 64 year old Bretton Woods credit bubble...is beginnig to pop...
Due to debt deflation...
"This process of "debt deflation" (a term coined by the early twentieth-century American economist Irving Fisher) was important in the U.S. deflation and depression of the 1930s (Due to a drop in consumer debt consumption) and may have played an important role in the economic problems of contemporary Japan (Due to a drop in consumer debt consumption)."--Remarks by Governor Ben S. Bernanke
Before the Economics Roundtable, University of California, San Diego, La Jolla, California July 23, 2003.
Below is the Bubble...At the top where it looks like its turning...that is only 2 quarters of data so it's not as bad as depicted but...The daily growth rate of the money supply has slowed by 42% or by the greatest amount in 62 years...
Every country on Earth has a bubble that looks basiclly just like the one below....Because the compounding interest commercial banking credit system is the same in every country on Earth...And all are tied to the US consumer...US consumer maxes out...and the US bubble pops...and all the bubbles on Earth pop.
The compounding interest commercial banking credit system is 600+ years old...
The 1929-1933 collapse followed by the 1933-1945 bankruptcy reorganization...was caused by the popping of a much smaller global credit bubble...
All they did in 1944 was the same thing over again basically except they were able to keep it going 6 times longer than the roaring 20's...This current bubble is the roaring 6 decades.
The system is imploding because all the just think positive ignore the negative drones at the start could not see the logical conclusion...the implosion.
It's negative...It's ignored...All that the drones see is the positive...until they arrive at the logical conclusion then they are forced to see what they have been ignoring all along because it becomes impossible to ignore the negative any longer.
To them Truth is negative because the lies that they tell to themselves and fall in love with are positive.
In 1944 Bretton Woods set up the new Global system to replace the one that caved in 1929-1933.
It made the US Dollar the global trade medium of exchange...
By default that made
The US consumer the demand of the world.
The USA the supply of inflation.
The rest of the world the demand for US Dollars.
The rest of the world the supply for the US Consumers.
The rest of the world the demand for inflation.
And for 64 Years the US consumer requested commercial banks to manufacture more and more US dollars to inflate the world.
But there is a maximum potential of debt US consumers can service...and in late 2006 they reached maximum potential and were forced to stop requesting commercial banks to manufacture more and more and more and could only request less and less...
The biggest engine of inflation on Earth, the 37 year old real estate bubble, then began collapsing...and since then to now the consumer has grown more and more exhausted and the daily growth rate of the money supply of total debt has collapsed by 42% and caused a deficit of 1.4 trillion dollars in the US economy...basically starving the banking system of revenue and profits...causing them to cave in...stock markets to collapse...
There is nothing that can be done...the US consumer is exhausted after sustaining the inflation of the world for 64 years and it's game over...
They need to stop and pay down debt...but the world runs on credit...credit that consumers request commercial banks to manufacture...debt.
The world can't wait for US consumers to stop and pay down debt...so...world go poof.
Yes this is a normal economic cycle...
It's a wave...Inflate greater than previous inflation to maximum potential and then inflate less than previous inflation to maximum potential.
The old pre 1900 wave was smaller because there was not high technology that needed to be sustained.
There were depressions all the time pre 1900...but back then when the system collapsed the two horse family could eat a horse to survive a winter...now you can't eat an SUV or as they found out in the 30's...a model T...
The current modern technological version of the absolute capitalist hierarchial food powered make work enterprise is not compatible with what the Austrians call...the natural cleansing process.
So it has to be sustained forever...Unfortunately the conpounding interest equation at the core of all the accounting algorithms can't be sustained forever...
Ultimately reguardless of what is done...the system can only inflate greater than previously to maximum potential and then inflate less than previously to maximum potential...
Since it's not designed to inflate less than previously to maximum potential...it implodes.
It was doomed from square one...
It is a doomed system...All it does is inflate to maximum potential and implode...the survivors are hired to build the next system.
The employers hire you all and work you til the day you die or are no longer needed and lay you off or fire you.
Or you can be self employed and work yourself until the day you die to avoid the layoffs and firings.
All the system can do is inflate greater than previous inflation to maximum potential and then inflate less then previous inflation to maximum potential...
Inflate then implode...the top then hires the survivors to construct the next march to doom with glee.
Bankers need a consumer to sign on the dotted line. Without that...the bankers are game over...
The lenders of the world who demand more in return than they give as a condition for helping...Need someone to agree to that...
Or they can't operate.
The bottom supports the top...The top does not support the bottom.
US consumers became exhausted in 2006 and since then have slowed their requests for commercial banks to manufacture more new money...
The inflation flow through reached maximum potential in 2007...and now it's all heading to the basement.
Consumers have requested 1.4 Trillion dollars less than last year...by the end of the year it will be 1.8 Trillion...All the money being pumped into the banking system...Is trying to replace that loss of revenue and profit.
The US consumers are maxed out...there is just no way they can continue requesting the required amount of new money the compounding interest equation is demanding.
US consumers maxed out and their requests for commercial banks to manufacture the required amount of new money to service the continued existence of the previously requested money began to decelerate...
In late 2006...and by late 2007 their requests collapsed to the point that the daily growth rate of the money supply slowed by 42% the most in 62 years.
Basically depriving the US economy and banking system of 1.4 Trillion dollars of revenue and profit.
Causing the banks and economy to deflate.
The hyperinflation was hidden with accounting tricks...the US manufacturing sector was exported out of the USA to low wage and slave wage zones...like China...beginning in the late 1970's when the USA was actually beginning to Hyperinflate.
Cash is PAPER, fiat money has no real value at all. Precious metals like gold and silver, which have been accepted as real money for thousands of years, are king.
Note that since the year 2000 gold has went from 200 an ounce to over 1000 an ounce while the paper money, or "cash is king" as you call it, has devalued to record lows.
Anyone holding paper needs their heads examined.
In 1930 you could buy the best quality mens suit for one ounce of gold or about 30 paper dollars, today those 30 paper dollars wont get you a nice pair of socks but that same one ounce of gold WILL STILL BUY YOU THE BEST MENS SUIT.
Think about that.
One silver quarter (all US quarters, dimes and half dollars were 90% silver until 1964) would buy you a gallon of gas 40 years ago, todays quarter, with no silver in it, wont get you a pack of gum, but that same silver quarter, dated before 1964 with 90% silver content, will STILL BUY YOU A GALLON OF GAS plus some, TODAY.
the point i was making was that computers have been an evolution in our society
Making people dependant on stuff which is not necessary for survival ain't evolution; it is the opposite of evolution.
Computers are only essential for modern society, but modern society isn't essential to humanity.
Modern society (read the dependence on modern technology and their fuel) is to man what drugs is to a junkie, but like a junkie modern man denies that he is addicted. Cauz he lives in the illusion that he has it all under control.
Not many would actaully like to go back to society ven to the 50's if they really had to live in it. There are pluses but there are so many minuses.
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Making people dependant on stuff which is not necessary for survival ain't evolution; it is the opposite of evolution.
Cauz he lives in the illusion that he has it all under control.
