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Exactly who prints the money, and what is backing it, in this wonderful utopia?
The money is not backed by anything, Money is nothing but a checking book that represent the goods and services available in the economy at any given time. It is issued by the economic system itself, BUT wages are distributed and calculated from outside, the law section.
You know that goods and services last only a few years, so every few years all the money loses its value just like what it represent ceases to exist. New money is periodic issued as the value of the old money ceases to exit. This guarantee that nobody accumulates more than what they need, and prevents anybody from gaining control over others.
The money is not backed by anything, Money is nothing but a checking book that represent the goods and services available in the economy at any given time. It is issued by the economic system itself, BUT wages are distributed and calculated from outside, the law section.
You know that goods and services last only a few years, so every few years all the money loses its value just like what it represent ceases to exist. This guarantee that nobody accumulates more than what they need, and prevents anybody from gaining control over others.
uhhhhh so how does "the economic system itself" physically manufacture the currency?
Fiat currency requires government backing via a central bank.
uhhhhh so how does "the economic system itself" physically manufacture the currency?
Fiat currency requires government backing via a central bank.
Central banks can get away with inflating the currency because there is no time limit for money. Their friends can accumulate it and buy stocks or whatever. If money had a term limit everything will have to be used before it expired.
Since making money out of money is a fiction, money is just an accounting book, there is no need for a stock market.
Central banks can get away with inflating the currency because there is no time limit for money. Their friends can accumulate it and buy stocks or whatever. If money had a term limit everything will have to be used before it expired.
Since making money out of money is a fiction, money is just an accounting book, there is no need for a stock market.
So all the money I've saved and earned through investment in my life time is an illusion?
An economic system without a government to regulate it is like an American football game without referees. Sooner or later, it will simply devolve into the physically (or economically) strongest dominating/destroying the weaker.
Capitalism needs governmental regulation in order to exist, even if that regulation only covers enforcement of property rights and of legal contracts.
Any proof or examples of this being true or did you just get it from reading the Marxist handbook for dummies? What you are insinuating is crony-capitalism/socialism(same thing really) which this thread is about, is needed because people are too bad and/ or ignorant to be able exist peacefully without it. What you are basically implying is that without the religion of the state and country to guide people, they are like dust in the wind. Are you very religious?
Last edited by Objective Detective; 11-08-2017 at 07:05 PM..
So all the money I've saved and earned through investment in my life time is an illusion?
If you think you have the money you invested 20 years ago, that would be like saying: I can save a box of sandwiches for 20 years so I can eat them then.
Accumulating wealth in real state or the stock market is an attempt to save something that cannot be preserved. Just like the egyptians preserved mummies so they can find their bodies when they come back to life, it's an illusion.
Like I said the money circulating about should represent the things that people are creating and working on now. When those things cease to exist, so does the money. If you don't do this the consequence is a over supply of money and everything gets more expensive. This type of inflation does no harm to the rich, they have a tons, but for the average person, it means missing rent payment or going without eating.
If you think you have the money you invested 20 years ago, that would be like saying: I can save a box of sandwiches for 20 years so I can eat them then.
Accumulating wealth in real state or the stock market is an attempt to save something that cannot be preserved. Just like the egyptians preserved mummies so they can find their bodies when they come back to life, it's an illusion.
Like I said the money circulating about should represent the things that people are creating and working on now. When those things cease to exist, so does the money. If you don't do this the consequence is a over supply of money and everything gets more expensive. This type of inflation does no harm to the rich, they have a tons, but for the average person, it means missing rent payment or going without eating.
How is inflation going to be controlled without a central bank that sets interest rates?
If you think you have the money you invested 20 years ago, that would be like saying: I can save a box of sandwiches for 20 years so I can eat them then.
Accumulating wealth in real state or the stock market is an attempt to save something that cannot be preserved. Just like the egyptians preserved mummies so they can find their bodies when they come back to life, it's an illusion.
Like I said the money circulating about should represent the things that people are creating and working on now. When those things cease to exist, so does the money. If you don't do this the consequence is a over supply of money and everything gets more expensive. This type of inflation does no harm to the rich, they have a tons, but for the average person, it means missing rent payment or going without eating.
How do I know what I'm saying is true? Have everyone take out their saving at the same time, then reality will sink in. You will get nothing. The real money that exist now is only what is circulation in goods and services, all those billions in the stock market, including your savings are only in people imagination.
Any proof or examples of this being true or did you just get it from reading the Marxist handbook for dummies? What you are insinuating is crony-capitalism/socialism(same thing really) which this thread is about, is needed because people are too bad and/ or ignorant to be able exist peacefully without it. What you are basically implying is that without the religion of the state and country to guide people, they are like dust in the wind. Are you very religious?
How do you protect against negative externalities without regulation. Do you think a factory owner would stop releasing dangerous levels of pollution out of the goodness of his heart? We have regulations to protect against market failures when polluters overproduce. That's just one example.
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