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Dont care.. If you didnt say stupid crap, like the only reason we have money is due to federal debt, you wouldnt be insulted so often..
So...you don't care that you appear ignorant by doing nothing but insult people? Even if you have a reasonable reply? Seriously, attack the idea not the person and your argument will appear a lot more intelligent.
Dont care.. If you didnt say stupid crap, like the only reason we have money is due to federal debt, you wouldnt be insulted so often..
Well there are several ways to create money besides deficit spending and Federal debt.
The Fed can create money from nothing.
The Treasury can mint coins.
Banks can of course create money, but the net is zero since they carry the opposite liability.
So...you don't care that you appear ignorant by doing nothing but insult people? Even if you have a reasonable reply? Seriously, attack the idea not the person and your argument will appear a lot more intelligent.
When someone continues to post the same old garbage, which is that without the federal debt, no money would exist then yes.. the stupid theories need to be called what they are...
Actually minting coins is part of the Executive. The Treasury.
[face palm]
You do realize that the executive branch executes the laws enacted by the Congress...
Pursuant to the USCON, Congress can only make laws to "coin money" or "borrow money."
Congress cannot make laws to "create money."
Nor give such a power to anyone else.
Oh look, someone who equates current debt with the gold standard, then talks about how we arent on the gold standard anymore.
Sigh.
Gold standard?
The unit dollar is a silver coin with 0.77 ounces of silver.
A one ounce gold coin is worth 20 unit dollars.
A "dollar bill" is an IOU, denominated in dollars.
Show me the LAW that says a unit dollar is a piece of paper. In my copy of the 1992 edition of the 50 titles of US Code, I cannot find it. Nor in later editions, is such a law present.
. . .
NOTE - An instrument containing an express and absolute promise of signer (i.e. maker) to pay to a specified person or order, or bearer, a definite sum of money at a specified time. An instrument that is a promise to pay other than a certificate of deposit. U.C.C. 3-104(2)(d)
- - - Black's Law Dictionary, Sixth Ed. p. 1060
REAL MONEY - Money which has real metallic, intrinsic value as distinguished from paper currency, checks and drafts.
- - - Black's Law Dictionary, Sixth Ed. p. 1264
MONEY - In usual and ordinary acceptation it means coins and paper currency used as a circulating medium of exchange, and does not embrace notes, bonds, evidences of debt, or other personal or real estate. Lane v. Railey, 280 Ky. 319, 133 S.W. 2d 74, 79, 81.
- - - Black's Law Dictionary, Sixth Ed. p. 1005
....
[] Federal Reserve NOTES ("Dollar bills") are defined in Title 12 USC Sec. 411 as obligations (debt) of the U.S. government, to be redeemed on demand. They are not MONEY, by law.
[] Real money, based on stamping all the gold in Fort Knox (147.2 million ounces), is approximately 2.9 billion dollars. Stamping all the world’s gold (5.6 billion ounces), computes to 112 billion dollars.
[] Legal tender, based on notes (debt) that cannot exceed the national debt, of which they are part, is currently 18 trillion dollars. Notes cannot pay debt, being debt. They can only discharge debts of obligated parties on said notes. Furthermore, the public debt can never be paid off with lawful money, since there is not enough bullion.
Are YOU an obligated party on that impossible to repay debt?
If you signed up with FICA, as a "contributor," you are.
So...you don't care that you appear ignorant by doing nothing but insult people? Even if you have a reasonable reply? Seriously, attack the idea not the person and your argument will appear a lot more intelligent.
So we should entertain ideas about Flat Earth?
Quote:
Originally Posted by Opin_Yunated
Explain why governments bend over backwards to prevent deflation.
They don't.
Your repeated insistence that they do is almost as comical as your claims that tax-payers don't pay interest on debt.
Quote:
Originally Posted by Opin_Yunated
You should open your mind.
You should go to Amazon.com and look for one.
Quote:
Originally Posted by Opin_Yunated
If we had a deflationary economic system, why would you buy that house for $100K when it will be $90K next year?
Falling prices are not Deflation.
Quote:
Originally Posted by Opin_Yunated
Over time, it is not assinine. Like I said, what incentive do you have to spend money today if it is always more valuable tomorrow? Make up hypothetical scenarios all you want; it doesn't make your position any less backwards.
That is not a Law of Economics.
That is a social science hypothesis that is unproven.
Quote:
Originally Posted by Opin_Yunated
Perhaps you should re-examine my "theories" more closely. I specifically cite public sector - private sector interactions, not private sector - private sector interactions.
"Your" theories are crack-pot nonsense.
You don't even have the guts to credit the website whose material you plagiarize.
"Monetary Sovereignty is the foundation of economics."
Yes, mythfighter.com......yeah, that's 3 reasons right there to waste my precious time.
Quote:
Originally Posted by Opin_Yunated
It pays bills by instructing the bank to credit it's sovereign currency into your checking account. Poof!
That might be how it works in your Wonderverse, but not in real life.
Quote:
Originally Posted by Opin_Yunated
The "debt" isn't analogous to household finances.
Yes, it is.
At some point -- for any number of reasons, the US will no longer be able to package its debt as treasury securities and sell them.
At that point, you have surplus/excess currency. The amount of Monetary Inflation it causes in terms of %Pct increase in prices of all goods and services, is a function of the volume of excess currency.
Quote:
Originally Posted by Opin_Yunated
Income inequality is indeed related to disposable income. To say otherwise is laughable.
You have control over your disposable income.
Try exercising control instead of taking what others have.
Quote:
Originally Posted by Opin_Yunated
.....so you omit demand-pull inflation?
You said...
Quote:
Originally Posted by Opin_Yunated
Demand causes inflation. Inflation is economic growth. An economy cannot expand without increasing demand for goods and services.
Quote:
Originally Posted by Mircea
Demand does not cause Inflation. When taxes or other regulatory actions increase the prices of goods and services, that's Cost-push Inflation. It has nothing to do with Demand, but thanks for your display of ignorance.
If you don't understand what you're talking about, then don't.
Quote:
Originally Posted by Opin_Yunated
Logic says I'm right. Get over it.
Logic says your wrong, and so are funky formulas.
Quote:
Originally Posted by Opin_Yunated
Debt is an asset for the private sector. It is a liability for the government. Double entry bookkeeping.
It is not "double-entry book-keeping."
Quote:
Originally Posted by Opin_Yunated
Tell us... what happens to the "interest" on the national debt?
Tax-payers pay for it.
Here's the link to the US government website you keep dodging, because it proves you're wrong.
Interest Expense on the Debt Outstanding
The Interest Expense on the Debt Outstanding includes the monthly interest for:
Only in your own mind. I recall it more of when you redefined deflation to your own definition, when it was pointed out that you had done so by providing you with the actual definition-you claimed that wasn't right.
Interesting to see you use the correct definition now. You CAN be taught!
You got it backwards.
You claimed falling gasoline and oil prices are Deflation. They are not, and I corrected you here in an attempt to spare you further embarrassment....
Quote:
Originally Posted by greywar
4. definition of deflation in economics:
-reduction of the general level of prices in an economy.
The dictionary disagrees with you. Of course im sure you have some new and unusual definition of deflation that you prefer, I however will stick to the one that everyone but you apparently uses.
Quote:
Originally Posted by Mircea
As I correctly pointed out, the problem is your lack of basic reading comprehension skills.
Quote:
: gen·er·al
1.
affecting or concerning all or most people, places, or things; widespread.
Quote:
Originally Posted by Mircea
Falling gasoline prices are not Deflation. Neither are Wal-Mart price roll-backs.
The operand is "general level."
Your wages are $22.00/hour if -- and only if -- $1 USD = $1. If $1 USD = $0.90 then:
$22.00/hour * $0.90 = $19.80/hour
How do we resolve that? We increase wages to $24.45/hour, so that:
$24.45/hour * $0.90 = $22.00/hour
Understand your labor is not worth more, rather the intrinsic value of the currency is worth less.
It is the currency that is defective, and it causes widespread general level across-the-board price rises for everything, meaning every "thing", meaning every single freaking thing, including your wages.
Monetary Deflation is the exact opposite of Monetary Inflation.
A Dodge Challenger is $26,995 if ---and only if --- $1 USD = $1. But if $USD = $1.11, then we have to decrease the price to offset the greater value of the currency, so the price is now ~$24,025.
Because the intrinsic value of the currency is now worth more, we offset that by decreasing prices. I'm not aware of any instance where wages/salaries decreased.
And you still don't get it.
Quote:
Originally Posted by greywar
The vast majority of economists will tell you that low levels of inflation are great, and deflation is truly truly bad.
There was Monetary Deflation during the Great Depression.
According you, Monetary Inflation would have been better.
Yeah, right....whatever....
Agreed. Can't rep you. Remember that the crash of 2008 and for that matter the depression were both credit crunches. In the former case the impetus was mortgage borrowing and in the latter case buying stocks on margin, i.e. with borrowed funds.
What?
Credit crunch had nothing to do with anything.
According to you,
1] Glass-Steagall forced the Chinese against their will to involuntarily enter the 2nd Level Economy; and then
2] Glass-Steagall forced 5 Billion people on Earth against their will to buy products made in China, by the Chinese who were forced to expand their economy against their will; and then
3] Americans started losing their jobs, because 5 Billion people were buying from China instead of the US, because Glass-Steagall forced those people against their will to buy things made in China, and Glass-Steagall made China export goods against their will....
...and so Glass-Steagall made Americans default on their mortgages.
If only Glass-Steagall had been repealed, China's development would have been stopped butt-cold and the other 5 Billion people on Earth would be buying from the US instead of China and Americans would have kept their jobs and paid their mortgages.
That is incredibly silly.
There is one and only one cause of recessions, and that is inefficient use of Capital.
Capital in the US is inefficiently used, ergo, Capital fled the US to go to BRICS and developing- and emerging-States where the Capital would be used efficiently.
The Great Depression started with the 1925 Recession, followed by the 1928 Recession, followed by the 1930 Recession, followed by the 1934 Recession, followed by the 1937 Recession, followed by the 1946 Recession, followed by the 1949 Recession, followed by 3 more recessions with the last one ending in 1961.
The next recession wasn't until the 1970s.
It is impossible for a stock market to cause a recession. The 1929 Market Crash started in June of 1929 when the US exited the recession that started in January 1928. The tariffs and tax increases levied by the Republican-controlled House & Senate (and White House) caused Capital to be used even more inefficiently, exacerbating the problem.
Quote:
Originally Posted by wutitiz
It's pretty simple--commerce runs on debt,...
Credit....not debt.
There's a difference, however fine that line might be.
Differentiating...
Mircea
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