The politicians and even corporate rank and files are all pimps of the bankers.
By way of illustration:
Mr. Smith goes to Washington to serve his country... When he got to D.C. he bought a nice apartment from a "newly" acquainted friend. And suddenly he was "educated" by his good friends on how to make money "legally" such as finding the "right" investment adviser at the "most opportunistic time" to make himself millions... Success at last, now he is one of them, or be "voted out" by neg ad.
Once they taste the "sweetness of success" the politicians now have fear in their hearts, the fear of losing their newly acquired wealth, and they know who are their bosses now -- the bankers and corporate big monies. They know the "Super PAC" and corporate media can turn against them and get them vote out of office. American politicians, both left and right, but especially the right-wing of the Republican party, are shameless preaching the "talking points" of bankers and big corporations.
@TeaParty1776, THIS IS END OF YOUR TEA-BAGGER SCUM SPECIES.
1776 was the year you barbaric Anglo-fites declared "independence" from the "tyrannical" British Empire that helped slaughtered the Native American Indians to help your barbaric genocidal ancestors steal the Natives' lands.
Today, Gold or fiat money, American canine-capitalism is finished! Yeah, you can start WW3 with China and Russia, but US will be come out as loser, the Hitler of WW3. You're finished, Tea-bagger FUCKTARD!
@chapsroc I agree. What our ancestors did to the natives they found in America was despicable. Add to that the destruction our industry wreaks upon the land, the "commoditization" of every natural resource and the attitude that everything as far as the eye can see is ours for the taking is short-sighted, unsustainable and, truly, unforgivable. We are an infestation on our Mother Earth and we should be dealt with.
@TeaParty1776 , the ultimate act of selfishness is .... WOULD SOMEONE PUT A BULLET TO THIS FUCKTARD TEA-BAGGER (a.k.a. TeaTarty1776 disease) YOUR HEAD, TO END YOUR MENTAL PARASITIC DISEASE! please? LAMO!
@TeaParty1776 Well, that line of reasoning is about as thoughful and persuasive as your previous ones. Thank you for your suggestions. Maybe its about time you moved on. I don't see much support for your positions here and I have no further desire to communicate with you.
@JamesJSimpson , you're a good man, there are still hope in world because of caring and conscientious men and women like you. That tea-bagger asshole is just non-sense. He is either a paid shill of the rich or a psycho.
@chapsroc Some people just like to read their own writing. . . . . no matter how absurd, and don't care about whose feelings they hurt. My take on TeaParty is that he/she about half understands about half of what he/she watches on You Tube and takes no time to do any actual research. Then when someone comes along who has done research and suggests where to find more information to clear up their misconceptions, he/she gets embarrassed and lashes out. Insecure little cowards, mostly.
@JamesJSimpson , I have not followed your posts so I don't know your positions on current world economic crises or your take on classical economic theories. But I suggest you don't waste too much time with the tea-bagger. He is as dogmatic as a pope is Catholic. You're absolutely right, HE DOESN'T EVEN UNDERSTAND HIS OWN WORDS.
Ex. his "rational selfishness is morality" If so, he should kill all his Children and grand parents to save money. No one ever made money raising children.
@JamesJSimpson , those dogmatic "free market" private enterprise rationality nuts are as "rational" when it comes to greed and money as a sex addict with a naked under age girl.
The Fed was created by the "selfish rationality" of bankers and big oil (Rockefeller) tycoons of the time. So now we have a "counterfeit" money printing Fed, so screamed the "selfish rational" nuts. LMAO!
Our federal government reminds me of the broken vending machine in a store that everyone keeps hopefully dropping their coins into under the watchful eye of the proprietor who stands by, knowing full-well that the machine is broken. But rather than hang an "out of order" sign on it, he maintains his vigilance ONLY to prevent anyone from damaging it before he can empty out all the coins at the end of the day. The Proprietor in my analogy is the Federal Reserve Banking system. End the Scam!
Friedman evades the cause of bank runs: central banks, ie, socialism, counterfeiting money and bank accounts to pay for war & welfare w/o direct taxes. This counterfeit encourages bad investments which fail because there is not enough savings for real, good investments. The Fed was created to bail out losers created by pre-Fed counterfeiting by the Progressives in the late 19th to early 20th centuries. Production requires market money and banking. Socialist money, banking is destructive.
@TeaParty1776 People do not realize the cutting of interest rates in the late 1920's to encourage people to borrow and invest in the stock market, which caused a huge bubble. After the crash, the DOW was down year to year around only 20 points before the run on the market. Sounds familiar to the tech stock and housing bubbles. Cheap money, people projecting the Dow to hit 100,000, they just forgot about one little thing...production of actual goods
@JamesJSimpson Bernanke said the Fed didnt create enough "money," allegedly causing the GD. So Im unsure what Friedman said. However, shortly prior to dying, he advocated capitalist money and banking and abolishing the Fed.
@TeaParty1776 The fec actually contracted the money supply by more than 30% in the months after Black Tuesday, thereby exacerbating the money shortage and worsening the depression. The money that was thus removed did not simply disappear. It fattened the Banksters' wallets at the expense of the common man. The whole system is fraudulent and designed to create debt and inflation. Via "rate adjustments" the Banksters work the system like an old pump.
@JamesJSimpson Depression is the necessary, unavoidable result of money and credit inflation and the resulting asset bubbles. Booms are bad. Busts are good. Resources must be reallocated back to sustainable production. Yes, banks get richer but the Fed has been morally justified as subsidizing the middle and poor classes helping the economy for all. Morality trumps money. But govt should not sacrifice some to subsidize others. Capitalism is properly selfish, with no sacrifice.
@TeaParty1776 , you tea-bagger scumback, talking out of your ass again. FED's trillion goes to the banksters at zero interest rates, and they use those money to bet on derivatives and to sell credit default swaps to risky entities and/or sovereign debts, etc. Those derivatives produce no jobs, no real macroeconomic benefits, it's worse than Las Vegas casino which at least has some trickle down effects of low paying jobs.
You tea-bagger lying parasites are just talking shits out of your ass!
@chapsroc The Fed must be abolished. Money and banking must be returned from politics to the market where production, not pressure group subsidies, is the goal. In that context, the financial industry will invest in production, not govt asset bubbles. Finance is the most important part of a money economy. It directs resources to the industries and firms most likely to profit. Your material well-being depends on the independent judgments of financiers. Don't chain them to politics.
@TeaParty1776 I disagree that inflation is either necessary or unavoidable. Inflation results from the injection of fiat money for which there is no corresponding value created. It dilutes the savings and investments of everyone who was already in the economic market prior to that injection of "funny money". He who controls the money supply controls inflation and deflation and they pump it like a water pump.
@JamesJSimpson Inflation is necessary, unavoidable in a politically controlled economy.
Its rare and brief in capitalism because market commodities, eg, gold, silver, become money. Inflating private banks would have insufficient market money to redeem their paper. They would go bankrupt w/no bailouts. The much more capitalist 19th century US had declining prices and increased production. FDR, Nixon split gold from the market, causing misleading investment signals.
@TeaParty1776 The Federal Reserve System is designed to pump money out of the economy and into the hands of the owners of the Federal Reserve System. The Fed essentially creates money out of thin air and RENTS it to our government, with interest.
@JamesJSimpson The Fed is a govt agency regardless of any dishonest laws. It was created so private banks would have (counterfeit) reserves as basis for cheap loans to govt (war, welfare) and "nationally important" businesses. This occurred pre-Fed by various agencies that, like the Fed, caused booms, busts. The Fed was supposed to cause a sustainable boom w/constant monetary, credit inflation. History of Money, Banking in the US-M. Rothbard. Read critically.
@TeaParty1776 BULLSHIT! HERE AR THE OWNERS OF THE FED: $1. ROTHSCHILD Banks of London and Berlin $2. Lazard Brothers Banks of Paris $3. Israel Moses Seif Banks of Italy $4. Warburg Bank of Hamburg and Amsterdam $5. Lehman Brothers of NY $6. Kuhn, Loeb Bank of NY (Now Shearson American Express) $7. Goldman, Sachs of NY $8. National Bank of Commerce NY/Morgan Guaranty Trust (J. P. Morgan Bank - Equitable Life - Levi P. Morton) $9. Hanover Trust of NY (Rockefellers & Chase)
@TeaParty1776 The Government then transfers that "magic" or "fiat" money into the commercial banking system. The commercial banking system then inflates that money further via the fractional reserve banking system that permits the banks to lend 9 times as much money as they have in depositors' funds. thereby creating more "fiat money" against which the banks charge interest and if the agreed payments against that loaned money are not made the bank forecloses on the secured property.
@TeaParty1776 And since the money never even existed before the bank loaned it, they are essentially charging interest on money that only exists on the books of the bank. They create it out of thin air and then charge interest on it and this is completely fraudulent and a hidden tax on everyone's savings. The FED has to go.
@TeaParty1776 See The Creature from Jekyll Island on You Tube if you are unwilling to accept my word for it. In fact, please don't accept my word for it. If yhou're going to comment about inflation or the Fed you'd might as welll have correct information yourself.
@JamesJSimpson Ideas, not economics, causes history. The Fed was sold with altruism and collectivism as a way to end the destruction from prior intervention w/more intervention. Govt force, not unarmed businessmen, caused this problem. Govt wanted to pay its bills w/o angering taxpayers. Thus unbacked paper money. See Richard Salsman's two books. Yaron Brooks online articles, lectures.
@JamesJSimpson Depression and monetary and credit deflation are the real, unavoidable effects of govt-created money & credit inflation and the resulting, unsustainable, asset bubbles. Govt shifts production from market to politics. This uses limited resources for goods and services that individual consumers dont want to buy with their own money. Those subsidized industries eventually fail when the destructiveness of continued inflation is obvious. Money, Banking & Business Cycle-Brian Simpson
Q: If the reason for the run on the bank in the first place was because people wanted their money back, how will the Fed's action to "deal with this problem of the run on the banks" actually benefit US?? How does diluting everyone's money, devaluing their life savings, help anyone but the banks? For doesn't this allow the banks to avoid liquidating their investments of the depositors' money, investments that obviously are more profitable to Banks than the paltry depositor interest payments?
@JamesJSimpson Jesus Christ, they fed LOANS the banks the money. The WHOLE FUCKING POINT is we don't want to force the banks to liquidate their assets.
"how will the Fed's action to "deal with this problem of the run on the banks" actually benefit US??"
When the Fed didn't act in the 1930s and thousands of banks collapsed and the money supply was reduced by one-third and unemployment hit 25%, how did that benefit US?
Let me see if I've got this right: When the Federal Reserve steps in to prevent the disastrous consequences of customers' run on the bank it does so by printing "funny" money that has no corresponding value in goods or services in the economy. The funny money dollars can only draw value from the "old" dollars already in circulation. It's like adding water to soup: it waters down the economy and it weakens the economy and robs value from everyone's savings. Sound about right?
@greg55666 How can money, real or counterfeit, cause production unless there is prior production? Would inflation cause a stone-age economy like Afghanistan to be industrialized. Real money (gold, silver, etc) coordinates production but counterfeit blinds investors to the most profitable production. Eg, we have excess houses, China has ghost _cities_.
@TeaParty1776 Listen, I'm going to explain something to you that you will not hear anywhere else: paper money and gold function in exactly the same way. Neither one has any intrinsic value. The ONLY value of either is its value as trade. The purpose of money is to allow easier trade across wider groups of people. It doesn't matter if it's made of gold or door knobs. One advantage gold had back in the day is it is harder to counterfeit--even that is not true anymore.
@greg55666 There are no intrinsic values. Gold has objective value because man's mind identifies its properties as valuable for trading and trade as furthering man's life. Man's mind has not identified paper as valuable for trading, thus legal tender laws force the use of paper that people would not choose to use. Will you trade your gold for my paper? Paper is good for socialists who pretend that socialism is low cost. Paper encourages unsustainable investments which fail, causing depression.
@TeaParty1776 , you fucktard can't speak about "Man's mind", a mentally retard tea-bagger like you need your fucktard mind seen by a shrink.
"selfish rational morality" walk the talk, dumbfuck: Go kill your children and save money to pay your shrink's fee and insurance rate hike. You are a waste product of freak nature. Since you're just a pile of shits, your offspring are just more shits, over supply of shits is bad investment. Kill your children, save $ for your selfish enjoyment.
@TeaParty1776 , you're crazy, go kill yourself for your "selfish rational morality". No one give a fuck about what you are saying, you're just torturing yourself by talking narcissistic shits inside your painful asshole! A "selfish rational moralist" whatever the fuck you meant by that no one cares, just go kill yourself, and spare yourself the embarrassment and pain.
@jimmyrtle Here is why they are so dumb. I owe $100K in school loans. Which would I rather use to pay it back, good thick wholesome soup, or water? Water obviously. Please, government, add more water to the economy. They don't understand how inflation functions. (Then again, they have trouble putting their pants on in the morning.)
@jimmyrtle Are you talking about fed loans? Of course. The truth is even the water analogy is dumb, because the economy is a ship--we all float up and down together. If a car goes from $5000 to $10,000, then our wages will too.
@greg55666 , there is something wrong with water/ship analogy...
Try fish, non-native artificial game fish and bait fish. The people of the mass are bait fish;
big corporations are large game fish such as large bass, pikes, walleyed, etc.,
Park and game wardens, biologists are the economists and "professionals" who serve the government that answer only to lake owners (bankers) who makes money off the hardcore fishermen (the greedy idiots who worship and slave to money).
@chapsroc , The economy, the whole globe now, is one big brutally fake scam, artificially managed and manipulated by the bankers and their big corporate elites cronies.
@JamesJSimpson Its worse than mere inflation. The Fed's funny money and funny bank accounts lower interest rates. Lower interest rates affect producers' goods more than consumers' goods. Business is mislead and encouraged to invest in more factories, raw materials, machines, labor, etc. But there is no real savings for investments. Consumers are consuming, not saving. But the phony economy booms, eg, stocks, dot.coms, houses, etc. The bubble bursts. Capitalism is blamed. More inflation. Whee!
@TeaParty1776 See _Human Action_ by Ludwig von Mises, an "Austrian" economist, ignored by mainstream quacks, who predicted the Great Depression by noting that roaring 1920s technology and stable prices was a contradiction. Tech lowers prices. Thus, the Fed must be inflating. Austrians also predicted our current mess. See Brian Simpson's, "Money, Banking & The Business Cycle" (Ayn Rand Bookstore).
Comsmic Fork does not have a clue. The real truth is that the public has voluntarily put themselves into debt. And they vote for libs in state and local govt's which spend every dollar they get from us. And the libs have attempted to get rid of poverty buy taking from taxpayers and giving the $ to others. So now we are 15 trill in the hole and poverty is the same as it was when Johnson and libs and Rhino's raided the social security fund.
@himsil You say "the gov'ts which spend every dollar they get from us." What you mean is "the gov'ts spend every dollar WE get from us." We are borrowing and spending our own money. Poverty is the same as it was because you continue to support republicans, who take money from the 99% to give to the wealthiest.
@marketanarchist2011, the general idea is that it encourages saving, which encourages price drops (to entice buyers), which further encourages saving (why buy now, when it'll be cheaper in a week?), and so on. Follow the logic and it leads to a slow down in production (since demand drops), which raises unemployment and further diminishes demand.
This vicious cycle is why (most) economists favor a low, steady inflation (say 3% per year) rather than get to close to negative territory (deflation).
@grantcivyt Saving and only savings increases production from a hand-to-mouth economy. Socialism destroys savings for consumption. Marx hated _Capitalism_, ie, producers goods and long-range investment for spontaneous creativity (not production)
in the workers paradise. We are headed back from industrialism to hunting-gathering. Progressive? Steve Jobs was progressive. Obama is reactionary.
@TeaParty1776 Can you elaborate on what you mean when you say savings increases production? Decreased demand for goods, which is the implication of augmented savings, would tend to depress prices and prompt a corresponding decrease in supply to match. In order to decrease supply, production would fall.
Decreased demand for consumers' goods frees resources for producers' goods which produce more, better and cheaper consumers' goods. Economic progress needs long-range planning, not merely production for immediate consumption. Mainstream economics is Pragmatist, lurching from immediate situation to immediate situation, like a drunk who evades the coming hangover. Economics in One Lesson by H. Hazlitt says look to indirect, unintended, long-range effects of economic action, including govt policy.
@TeaParty1776 , trash talk from you fucktard tea-bagger is like an old whore trying to sell your "services" to passer by. You fucktard tea-bagger forget that you (your ideology) is just an old, failed, used and ugly sagged bitch that had been "tried" by every men in town... but now not even a donkey wants your "services."
Don't understand what I'm talking about? Read this comment and all my previous comments about you. Or put a bullet in your head! Or some else will!
@federal401 Deflation is a very necessary part of the market and it arises after assets are overpriced in the first place.The incentive to buy a newer vehicle is in the features of the newer model. $7,500 would open up to a larger market, flooding the auto industry with sales. What is more affordable $600/month or $150/month? Exports would thrive in this great deflation(what are,u a keynesian?) It would greatly benefit anyone with savings as opposed to inflation which steals it.
@federal401 And how do people live while waiting for a lower price? Prices must be free to change with demand, cost, competition. Prices are signals of how people value something relative to everything else in an economy. Ten chickens for one cow. Money aids trade but does not change reality. Prices coordinate production. Govt money uncoordinates production so that real relative values are unknown. Inflation causes asset bubbles which pop and are blamed on capitalism.
@marketanarchist2011 It decreases socialist inflation and politically demanded asset bubbles. In a capitalist economy, with private money and unregulated investing, there will be a minimum of inflation and deflation. When govt inflates money and bank accounts, there will be a boom-bust cycle. The bust will destroy the inflation, deflating the counterfeit money and bank accounts. This will encourage investors to less risky projects.
@TeaParty1776 , STFU! Go elect Ron Paul for prez, until you do that, you're just a stupid tea-bagger talking shits out your mouth no credibility whatsoever. Then come back here, I'll either school you on real economics, or put a bullet to your head to end your misery. LMAO!
This is contentious. If people want their money out of a certain bank, it's their choice, it's not up to the Fed to make sure banks survive. In a free market system if I take my money out of a business and it fails, you let it fail. If banks want to prevent runs, they can either buy insurance, or the individual can do that themselves, insure their savings accounts. But the Fed prints money each year inflating the money, its so called 'purpose' has never been utilized, end the fucking Fed.
@Otzmatron Bank runs are caused by govt inflated, less valuable money that people want to spend before its even less valuable. Or, if banks issue too much paper money relative to their own gold, people want to get their own money before it runs out. See Richard Salsman's two books on US banking history and how the Fed weakens banks with bad money and bad investments. Less regulated 19th century banks were more solvent because of gold and less bailouts. Bailouts encourage bad investments.
This highlights the importance of understanding economic & financial history, a sub-set of financial literacy, which in the midst of all the financial reforms has slipped through the cracks. This complex system can't function if consumers of financial products don't know the basics. Successful completion of a course in basic finance should be required in every high school and college curriculum.
I'm afraid a lot of what is taught like the stuff in this video is total nonsense.
The reason for the collapse is not that more money printing was not forthcoming. Rather the root cause of the collapse was fractional reserve banking - which is another case of creating money out of thin air.
Fractional reserve banking is nothing more than counterfeiting and when that counterfeiting is exposed in a bank run, it all comes crashing down.
@orangedac Fractional reserve does not create money out of thin air.
It's not counterfeiting either. If banks could create money out of thin air, why would they worry about a bank run? They can just create more out of thin air.
fractional reserve does create money out of thin air. the notion that the supply of money is restricted to the amount of deposits times some multiplier is a lie. Why do you think banks in 2009 were told it was OK for them to maintain a zero reserve ratio (i.e. no reserves relative to currency issued).
most of the banks now are insolvent yet continue to operate. how is that?
paper money is fraud and like all fraudulent systems, it relies on theft of peter to pay paul.
Check out capital reserve ratios for banks in 2008/9. It went to 0%.
But even that is beside the point when the Federal Reserve handed out 16 trillion in taxpayer money to banks. They just turn around and buy govt bonds at a higher yeild which effectively means free money. Why do they need free money - reason - they are insolvent.
Google : Audit of the Federal Reserve Reveals $16 Trillion in Secret Bailouts
@orangedac You're confusing reserve requirements (they hold a certain % of deposits in reserve, not to be lent out) with capital requirements (they need a certain amount of capital to support their assets).
If their capital dropped to zero, it's because they lost big money on their assets (mortgages), not because the government allowed lower requirements on their deposits.
The Fed gave short term loans, no taxpayer money involved. Which bonds would they buy and at what rates?
The banks are beyond insolvent if they needed 16 trillion.
As for no taxpayer money involved, are you kidding. Where do you think the fed gets 16 trillion from? Who do you think ultimately backs the fed? Money that is printed up dilutes & destroys the wealth of savers & creditors.
All kinds of fancy terms are used to explain fiat money & paper shuffling but at the end of the day the Federal Reserve is little more than a money counterfeiting organization for bank cronies.
@orangedac They didn't borrow $16 trillion at once, that's cumulative. If they borrow $1 trillion and pay it back in a week and then borrow $800 billion, that's $1.8 trillion, even though only $1 trillion was outstanding at most.
The Fed creates the money, that's where they get it, no taxpayer money needed. Why does a bank that creates its own money need taxpayer backing?
Counterfeiting is when unauthorized persons create money....the Fed is authorized, not counterfeiting at all.
16 trillion was lent out against depreciating assets in a short period of time. It took from the 1950s to 2008 to accumulate a total debt of about 14 trillion for all of America while 16 trillion was given in the span of a few months. Can you spell insolvent.
Counterfeiting is theft. Whether a bunch of crooks bribe politicians to declare it as legal is irrelavant. It is theft of wealth from productive society.
Watch this video before posting any more v=bhMacPvc5qc
Common sense will tell you when banks are leveraged up 40:1 on mortgages that have depreciated for 3 years straight, they have the capasity to repay nothing. Instead creditors, savers and taxpayers have been ripped off via money printing which has been channeled to banks though below market rate govt loans which banks used to purchase govt bonds at higher rates.
Counterfeiting is theft regardless of what fancy term is used. You''re the one who's confused. Watch the video.
Banks have deleveraged their gambling losses onto the backs of taxpayers. When banks are leveraged 40:1 on real estate that's going down in value, there's no way a "profit" magically appears.
Excess reserves is printed money handed via the back door to banks by the Fed at the expense of taxpayers, creditors & savers. Incidentally these same banks are shareholders of the Fed.
Counterfeiting is theft. No amount of fancy paper shuffling or terminology will change that fact.
Did you sleep through the entire 2008 securitized real estate bust which has been offloaded onto taxpayers? The govt aka taxpayers are currently backstopping trillions of mortgage backed junk on the balance sheet of the Fed.
Where do you think the record profits of 2010, 2011 for these banks came from? Where do you think money to deposit as excess reserves at the Fed comes from when bank's leveraged real estate portfolios have performed disasterously? Thin air?
Fannie and Freddie did but it was not mortgage losses per say but LEVERAGE on mortgage losses that amplified the economic mess. Now guess who was gambling around with leverage, selling credit default swap on debts, watching it go boom and then offloading it on the taxpayer. Also guess what institution was used to offload the losses.
Its time to end this scam called the Federal Reserve. Intrinsically worthless paper money only invites theft, corruption & croneyism.
I'd be more than glad to exchange my intrinsically worthless paper money for American Eagle gold coins (worth $1800) which the govt has stamped with a value of $50.
When can we make this trade? I'm willing to take a few thousand coins off your hands.
Come on now, can't we cut a deal where I exchange the intrinsically wrothless paper for the gold price the Federal Reserve still quotes on its books i.e. $42/oz.
After all, if the paper is worth what it says it and keeps its value, the $50 stamped on govt issued 1 oz American gold eagle coins should surfice.
Sillyness aside, could you tell me why a gold coin which was valued at $50 is now $1800/oz as measured by intrinsically worthless paper?
Supply of gold has not chaned by much, why has demand?
Fueling economic bubbles on the basis of borrowing money has run out. Govt debt 31 years ago was < 1 trillion and now is 15 trillion. Private debt is many multiples of that.
The market no longer believes more debt is going to bring more growth. The only scam left is to devalue the paper which essentially is a default on debt. Thus people are fleeing paper.
@orangedac And why does the govt hang on to that worthless relic, gold, that FDR stole from productive people? Is govt afraid that gold in citizen's hands will cause them to wipe their ass w/Fed Reserve Notes? Note this!
@jimmyrtle 1923 German inflation. A wheelbarrow of sacred govt paper for a loaf of bread. Workers demanded wages in the morning so they could buy anything prior to decrease in the value of money later in the day. Buy anything,. even coocoo clocks, to hold value. Trash the Fed. Back to gold. Tar and feather Bernanke, Krugman.
@jimmyrtle It was just an example of the destructiveness of govt inflation.
Coincidences are not causes. During the US gold standard, there was occasional govt intervention in money, banking. See Richard Salsman, Murray Rothbard. Govt inflated and bailed out banks which used the inflation to make loans which looked good because prices rose. The gold standard decreased the govt's destructiveness, which is why FDR and Nixon split gold from the economy. Without gold, economies float weightless.
@jimmyrtle What is TARP, and what is this thing that bank of America is trying to regain with 75 trillion dollars? Really I don't know what you are reading but i suspect that you watch way too much television.
@orangedac he apparently is unable to understand what is going on. is there any doubt? It is simple text book reading that fractional reserve banking causes inflation.
@jimmyrtle i am sorry that you are unable to comprehend how Fractional Reserve Lending works. Yes Fractional Reserve Banking does create money out of thin air because the money use to make loans do not come out of deposits. This is commonly known and the banks admit to it. Just read MODERN MONEY MECHANICS and A PRIMER ON MONEY. Additionally there is a the M2 and M3 money supply. Where do you suppose that comes from.
@jimmyrtle The question of whether or not fractional reserve lending create money and inflates have long been admitted. Once again I am sorry that you cannot come to terms with the reality of what is going on.
@jimmyrtle Fractional reserve banking works like this: 1) new banks open and its first customer deposits $1000, in a debit card account. 2) The second customer walks in and wants $500 credit card, which he gets based on the $1000 deposit. So the first customer and the second customer spends all of their money that means that there is $1000 in the economy and an additional $500 dollars from the credit card. This is how most of our money is created. So in a 100% reserve banking either
the credit cards does not exist or the debit card customer cannot spend the 500 dollars. 100% accountability. hence the multiplier effect does not spiral out of control.
The money system that we have inherited, i.e. - The Bank-Debt Based Fiat Money System, (which is the national currency system). For the system to function, the currency has to be scarce, and has to be maintained in scarcity. The job of The Central Banks is to create, and to maintain the scarcity of the currency. If they don't do this, the currency becomes valueless, and stops functioning. (Continued Below...)
Now, of course what that means is that you have the whole ugly competition for the scarce resource that's there; we have the competition for the artificially scarce dollars, or euro's, or whatever, National Bank-Debt Money. This is the paradigm we are living with, a total monopoly of Bank-Debt Money. That is the thing that nobody questions... it has to be a monopoly, and it has to be Bank-Debt Money. Why? What a manipulated, rigged monetary system, designed to benefit a evil, rich elite !!!
@CosmicFork No, designed to aid the middle class and poor with funny money. But banks are used by govt to funnel it into economy. So banks prosper until economy crashes.
"Once depositors start trying to take their money out of the banks, there is a strong tendency for the quantity of money to fall. Each dollar of cash which is withdrawn from a bank had been backing several dollars of deposits"
I would appreciate it if someone could explain this to me. Maybe it's that I didn't hear him correctly since this is a fairly old video.
The Fed is suppose to help banks get out of runs. They did not do that at the beginning of the great depression. Instead, they shrink the quantity of money in the system by over a third. This resulted in the closing of over 3000 banks in the USA and the deflation of the economy. Over thirty percent in unemployment resulted.
Idiots, he wasn't supporting bail outs. Listen carefully: he wanted the FED to expand money supply to counter the deflation from the stock market burst. The FED did the exact opposite: it constricted money supply and made it worse. Now, Friedman was for abolishing the FED; but given that we have a central bank, it had certain roles during its stay.
Where was "the invisible hand" when our economy went south? Years of Friedman-inspired deregulation, executed by father and son Bush, left financial markets in the hands of -- well -- invisible hands. Now off their regulatory leashes, financial institutions could create, invest in, and manipulate new, exotic, unstable, ungrounded, risky, but highly profitable, financial products -- mainly derivatives and securitization devices, such as subprime mortgage packages.
Milton Friedman was a fraud who wanted to have it both ways.
For example, lets say the FED didn't exist, and there is no such A-bank whose real money would dwarf all other banks so this A-bank would act voluntarily as the leader of the pact in setting interest rates policies and would act as "lender of last resort" to other banks... (a) would all banks willing to follow A-bank's lead?; (b) A-bank risking its depositors money making loans to stressed banks? (c) This setup = "free market"?
Newt on Ben Bernanke - "I will fire him tomorrow. I think he’s been the most inflationary, dangerous & power-centered chairman of the Fed in the history of the Fed.” I would also describe OBAMA the same way.
Milton Friedman's "free market" fraud and Fed fiat money printing scheme is a corrupted ideology front for banks and their corporate cronies to commit economic crimes on global scale.
"Free market" and deregulation allow the Wall Street bankers to create "bank run" by their fellow bankers, I am talking about the quadrillions of financial derivatives and mortgage backed sec. swaps, etc. that are 1000s times greater than depositors bank run... FED's trillion$ now go to these banksters!
@chapsroc There has been no free market in the US since the late 50's. What you are describing is corporatism, which is not at all a free market system.
@pretorious700 , Your old "free market" of the "Pure Capitalism" are just craps. Your shit-eating capitalism with a "C" doesn't exist, it never had, because capitalism itself is a front ideology for the upper class. But that is too complicate for you.
"Free Market" is an ideological term, Adam Smith actually used "the invisible hand" of the market and its self regulated tendency -- it's not a license to commit frauds as advocated by MF and Reagan ideologically driven "free market" craps.
@TeaParty1776 , hey tea-bagger fucktard, WTF are you on? You tea bagger dumbass sure have a lot of free time. My comments were posted 4 month ago, either you dumbass get a real job and stfu, or learn to speak articulately, be specific which one of statements were you referring to? State your fucktard point, why you agree or disagree. Unlike you retard tea-bagger idiots, I have better thing to do...
@TeaParty1776 , mother fucker tea-bagger scum, the only thing that I'd sacrifice is to cut off your head and stuff it back in your mother's ass or stick your head on Jesus's cross! Insert your head back in your tea-bagger shitty asshole!
You are right about the derivatives that risks the future of the global economy.
However, Friedman's free market theory does not include having a Fed "big government" institution to bailout the banks. He was against such policy because it passes the bank risk to the little guys and removes the danger that bankers need to feel when they abuse lending limits. Friedman later said he would abolish the Fed. He wanted a system that made depositors more aware and bankers take less risk.
@fred00111 , you're a very laughable person, you fit into what I call tin box square-headed. Milton Friedman was an typical idiotic Jew whose dogmatic polemics created monsters ( i.e. the Fed+unchecked greed) that eventually veered its head and bid his ass.
MF's entire interest rates and price stability theory rest solely on the very structure of the Fed who can print fiat money from which it derive it "power" to set interest rates. "free market" creates derivatives mkts.
Friedman also revealed his own hypocrite on "free market" psychology. He obvious didn't trust the "market" of depositors on bank run psychology that he basically advocate a "central bank" to simply print paper money to give to the depositors until they are satisfied and stop withdrawing their money from the banks. A "free market" with monopoly "money"? What an intellectually coward ass hole? This guy is morally bankrupted!
The Fed's monetary system is the same as it was in 1930 - the fractional reserve lending rule allows banks to lend about ten times more than their assets. Money is created this way but none is printed. This means that the system will need to print money whenever there is a run on the banks. Friedman did not say he preferred this system, in fact, he implies not. He just tells us how it should have been managed during the crisis after the 1929-30 market crash.
In this video, this squared-head retard Milton Friedman admitted the fallacy of his monetary/interest rates theory. The key to understand Friedman's fraud is the role of a "central bank" to create money out of thin air which IS EXACTLY WHAT THE FED HAD BEEN DOING SINCE RONALD REAGAN ERA, and not by coincident, Friedman was the economic adviser to prez Reagan.
@pretorious700, you're yet another retard speaking from inside of your ass. You stupid blob forget the fact that the US dollars was backed by gold up until 1971, when Richard Nixon unilaterally took it off of the gold standard. Do some research before you open your stupid mouth! Even after 1971, and the Vietnam war financing needs, the Fed didn't print as much until Friedman and the b-grade Hollywood actor name Ronald Reagan that US started print money as a policy to grow the economy.
The key points Friedman makes begins at 1:30. "A growing economy needs additional money in order to prevent deflation and problems." He points out the Fed failed its mandate and actually stifled the availability of money. The recent bailouts in the banking system is not the same situation. There was no run on the banks by the public. They lost massive profits due to irresponsible lending practices and should have been allowed to fail for doing so. The Feds role is not to bailout banks for such.
To all, this video is NOT an opinion piece, it is an education piece. Friedman has never had a high opinion of the Federal Reserve but he is giving a factually correct history lesson. It is because of this point in history that Friedman has his opinion. When an institution fails to perform its primary function and in doing so causes a worldwide financial collapse, that institution does not deserve to be held in high regard.
@zdrux Why do people insist on using this stupid quote?? Marx could not have followed Keynesian philosophy because Keynes was born in the same year that Marx died. Marx wold have, however, embraced Keynesian philosophy.
@chapsroc , Go troll elsewhere
IBringIt56 2 minutes ago
The politicians and even corporate rank and files are all pimps of the bankers.
By way of illustration:
Mr. Smith goes to Washington to serve his country... When he got to D.C. he bought a nice apartment from a "newly" acquainted friend. And suddenly he was "educated" by his good friends on how to make money "legally" such as finding the "right" investment adviser at the "most opportunistic time" to make himself millions... Success at last, now he is one of them, or be "voted out" by neg ad.
chapsroc 2 hours ago
Once they taste the "sweetness of success" the politicians now have fear in their hearts, the fear of losing their newly acquired wealth, and they know who are their bosses now -- the bankers and corporate big monies. They know the "Super PAC" and corporate media can turn against them and get them vote out of office. American politicians, both left and right, but especially the right-wing of the Republican party, are shameless preaching the "talking points" of bankers and big corporations.
chapsroc 2 hours ago
jimmyrtle
se7ensnakes 2 days ago
@TeaParty1776, THIS IS END OF YOUR TEA-BAGGER SCUM SPECIES.
1776 was the year you barbaric Anglo-fites declared "independence" from the "tyrannical" British Empire that helped slaughtered the Native American Indians to help your barbaric genocidal ancestors steal the Natives' lands.
Today, Gold or fiat money, American canine-capitalism is finished! Yeah, you can start WW3 with China and Russia, but US will be come out as loser, the Hitler of WW3. You're finished, Tea-bagger FUCKTARD!
chapsroc 2 days ago
@chapsroc Rational selfishness is morality. Sacrifice is depraved
TeaParty1776 11 hours ago
@chapsroc I agree. What our ancestors did to the natives they found in America was despicable. Add to that the destruction our industry wreaks upon the land, the "commoditization" of every natural resource and the attitude that everything as far as the eye can see is ours for the taking is short-sighted, unsustainable and, truly, unforgivable. We are an infestation on our Mother Earth and we should be dealt with.
JamesJSimpson 9 hours ago
@JamesJSimpson Try suicide for the ultimate sacrifice.
TeaParty1776 7 hours ago
@TeaParty1776 , the ultimate act of selfishness is .... WOULD SOMEONE PUT A BULLET TO THIS FUCKTARD TEA-BAGGER (a.k.a. TeaTarty1776 disease) YOUR HEAD, TO END YOUR MENTAL PARASITIC DISEASE! please? LAMO!
chapsroc 6 hours ago
@TeaParty1776 Well, that line of reasoning is about as thoughful and persuasive as your previous ones. Thank you for your suggestions. Maybe its about time you moved on. I don't see much support for your positions here and I have no further desire to communicate with you.
JamesJSimpson 5 hours ago
@JamesJSimpson , you're a good man, there are still hope in world because of caring and conscientious men and women like you. That tea-bagger asshole is just non-sense. He is either a paid shill of the rich or a psycho.
chapsroc 6 hours ago
@chapsroc Some people just like to read their own writing. . . . . no matter how absurd, and don't care about whose feelings they hurt. My take on TeaParty is that he/she about half understands about half of what he/she watches on You Tube and takes no time to do any actual research. Then when someone comes along who has done research and suggests where to find more information to clear up their misconceptions, he/she gets embarrassed and lashes out. Insecure little cowards, mostly.
JamesJSimpson 5 hours ago
@JamesJSimpson , I have not followed your posts so I don't know your positions on current world economic crises or your take on classical economic theories. But I suggest you don't waste too much time with the tea-bagger. He is as dogmatic as a pope is Catholic. You're absolutely right, HE DOESN'T EVEN UNDERSTAND HIS OWN WORDS.
Ex. his "rational selfishness is morality" If so, he should kill all his Children and grand parents to save money. No one ever made money raising children.
chapsroc 3 hours ago
@JamesJSimpson , those dogmatic "free market" private enterprise rationality nuts are as "rational" when it comes to greed and money as a sex addict with a naked under age girl.
The Fed was created by the "selfish rationality" of bankers and big oil (Rockefeller) tycoons of the time. So now we have a "counterfeit" money printing Fed, so screamed the "selfish rational" nuts. LMAO!
chapsroc 3 hours ago
Our federal government reminds me of the broken vending machine in a store that everyone keeps hopefully dropping their coins into under the watchful eye of the proprietor who stands by, knowing full-well that the machine is broken. But rather than hang an "out of order" sign on it, he maintains his vigilance ONLY to prevent anyone from damaging it before he can empty out all the coins at the end of the day. The Proprietor in my analogy is the Federal Reserve Banking system. End the Scam!
JamesJSimpson 2 days ago
Friedman evades the cause of bank runs: central banks, ie, socialism, counterfeiting money and bank accounts to pay for war & welfare w/o direct taxes. This counterfeit encourages bad investments which fail because there is not enough savings for real, good investments. The Fed was created to bail out losers created by pre-Fed counterfeiting by the Progressives in the late 19th to early 20th centuries. Production requires market money and banking. Socialist money, banking is destructive.
TeaParty1776 6 days ago
@TeaParty1776 People do not realize the cutting of interest rates in the late 1920's to encourage people to borrow and invest in the stock market, which caused a huge bubble. After the crash, the DOW was down year to year around only 20 points before the run on the market. Sounds familiar to the tech stock and housing bubbles. Cheap money, people projecting the Dow to hit 100,000, they just forgot about one little thing...production of actual goods
quinnrasta 3 days ago
Friedman later acknowledged that the Fed's monetary policies and actions caused the U.S. Great Depression. watch?v=Iv6RFubNxXo
JamesJSimpson 2 weeks ago 2
@JamesJSimpson Bernanke said the Fed didnt create enough "money," allegedly causing the GD. So Im unsure what Friedman said. However, shortly prior to dying, he advocated capitalist money and banking and abolishing the Fed.
TeaParty1776 2 days ago
@TeaParty1776 The fec actually contracted the money supply by more than 30% in the months after Black Tuesday, thereby exacerbating the money shortage and worsening the depression. The money that was thus removed did not simply disappear. It fattened the Banksters' wallets at the expense of the common man. The whole system is fraudulent and designed to create debt and inflation. Via "rate adjustments" the Banksters work the system like an old pump.
JamesJSimpson 2 days ago
@JamesJSimpson Depression is the necessary, unavoidable result of money and credit inflation and the resulting asset bubbles. Booms are bad. Busts are good. Resources must be reallocated back to sustainable production. Yes, banks get richer but the Fed has been morally justified as subsidizing the middle and poor classes helping the economy for all. Morality trumps money. But govt should not sacrifice some to subsidize others. Capitalism is properly selfish, with no sacrifice.
TeaParty1776 2 days ago
@TeaParty1776 , you tea-bagger scumback, talking out of your ass again. FED's trillion goes to the banksters at zero interest rates, and they use those money to bet on derivatives and to sell credit default swaps to risky entities and/or sovereign debts, etc. Those derivatives produce no jobs, no real macroeconomic benefits, it's worse than Las Vegas casino which at least has some trickle down effects of low paying jobs.
You tea-bagger lying parasites are just talking shits out of your ass!
chapsroc 2 days ago
@chapsroc The Fed must be abolished. Money and banking must be returned from politics to the market where production, not pressure group subsidies, is the goal. In that context, the financial industry will invest in production, not govt asset bubbles. Finance is the most important part of a money economy. It directs resources to the industries and firms most likely to profit. Your material well-being depends on the independent judgments of financiers. Don't chain them to politics.
TeaParty1776 9 hours ago
@TeaParty1776 I disagree that inflation is either necessary or unavoidable. Inflation results from the injection of fiat money for which there is no corresponding value created. It dilutes the savings and investments of everyone who was already in the economic market prior to that injection of "funny money". He who controls the money supply controls inflation and deflation and they pump it like a water pump.
JamesJSimpson 2 days ago
@JamesJSimpson Inflation is necessary, unavoidable in a politically controlled economy.
Its rare and brief in capitalism because market commodities, eg, gold, silver, become money. Inflating private banks would have insufficient market money to redeem their paper. They would go bankrupt w/no bailouts. The much more capitalist 19th century US had declining prices and increased production. FDR, Nixon split gold from the market, causing misleading investment signals.
TeaParty1776 9 hours ago
@TeaParty1776 The Federal Reserve System is designed to pump money out of the economy and into the hands of the owners of the Federal Reserve System. The Fed essentially creates money out of thin air and RENTS it to our government, with interest.
JamesJSimpson 2 days ago
@JamesJSimpson The Fed is a govt agency regardless of any dishonest laws. It was created so private banks would have (counterfeit) reserves as basis for cheap loans to govt (war, welfare) and "nationally important" businesses. This occurred pre-Fed by various agencies that, like the Fed, caused booms, busts. The Fed was supposed to cause a sustainable boom w/constant monetary, credit inflation. History of Money, Banking in the US-M. Rothbard. Read critically.
TeaParty1776 9 hours ago
JamesJSimpson 8 hours ago
@TeaParty1776 The Government then transfers that "magic" or "fiat" money into the commercial banking system. The commercial banking system then inflates that money further via the fractional reserve banking system that permits the banks to lend 9 times as much money as they have in depositors' funds. thereby creating more "fiat money" against which the banks charge interest and if the agreed payments against that loaned money are not made the bank forecloses on the secured property.
JamesJSimpson 2 days ago
@TeaParty1776 And since the money never even existed before the bank loaned it, they are essentially charging interest on money that only exists on the books of the bank. They create it out of thin air and then charge interest on it and this is completely fraudulent and a hidden tax on everyone's savings. The FED has to go.
JamesJSimpson 2 days ago
@TeaParty1776 See The Creature from Jekyll Island on You Tube if you are unwilling to accept my word for it. In fact, please don't accept my word for it. If yhou're going to comment about inflation or the Fed you'd might as welll have correct information yourself.
JamesJSimpson 2 days ago
@JamesJSimpson Ideas, not economics, causes history. The Fed was sold with altruism and collectivism as a way to end the destruction from prior intervention w/more intervention. Govt force, not unarmed businessmen, caused this problem. Govt wanted to pay its bills w/o angering taxpayers. Thus unbacked paper money. See Richard Salsman's two books. Yaron Brooks online articles, lectures.
TeaParty1776 9 hours ago
@TeaParty1776 I'm sorry my replies are all in reverse order. Please read them in reverse order. :) Cheers!
JamesJSimpson 2 days ago
@JamesJSimpson Depression and monetary and credit deflation are the real, unavoidable effects of govt-created money & credit inflation and the resulting, unsustainable, asset bubbles. Govt shifts production from market to politics. This uses limited resources for goods and services that individual consumers dont want to buy with their own money. Those subsidized industries eventually fail when the destructiveness of continued inflation is obvious. Money, Banking & Business Cycle-Brian Simpson
TeaParty1776 9 hours ago
thx for the video very great explanation!
hromi 2 weeks ago
Friedman came around (except for his endorsement of bernanke) at the end of his life and called for the fed to be abolished: /watch?v=JL3FT0O4kYg
RMT87 3 weeks ago
@RMT87 Isn't it remarkable how these people in positions of such high power and esteem in our nation tend to "come clean" at the end of their lives?
JamesJSimpson 2 days ago
Q: If the reason for the run on the bank in the first place was because people wanted their money back, how will the Fed's action to "deal with this problem of the run on the banks" actually benefit US?? How does diluting everyone's money, devaluing their life savings, help anyone but the banks? For doesn't this allow the banks to avoid liquidating their investments of the depositors' money, investments that obviously are more profitable to Banks than the paltry depositor interest payments?
JamesJSimpson 3 weeks ago
@JamesJSimpson Jesus Christ, they fed LOANS the banks the money. The WHOLE FUCKING POINT is we don't want to force the banks to liquidate their assets.
greg55666 2 weeks ago
This has been flagged as spam show
@JamesJSimpson
"how will the Fed's action to "deal with this problem of the run on the banks" actually benefit US??"
When the Fed didn't act in the 1930s and thousands of banks collapsed and the money supply was reduced by one-third and unemployment hit 25%, how did that benefit US?
jimmyrtle 5 days ago
@JamesJSimpson Central banking is destructive to short-range private bankers. Mississippi Bubble, South Sea Bubble, etc.
TeaParty1776 9 hours ago
Let me see if I've got this right: When the Federal Reserve steps in to prevent the disastrous consequences of customers' run on the bank it does so by printing "funny" money that has no corresponding value in goods or services in the economy. The funny money dollars can only draw value from the "old" dollars already in circulation. It's like adding water to soup: it waters down the economy and it weakens the economy and robs value from everyone's savings. Sound about right?
JamesJSimpson 3 weeks ago
@JamesJSimpson Yes and no. Did you watch the video? It allows inflation, which allows the economy to grow.
greg55666 2 weeks ago
@greg55666 How can money, real or counterfeit, cause production unless there is prior production? Would inflation cause a stone-age economy like Afghanistan to be industrialized. Real money (gold, silver, etc) coordinates production but counterfeit blinds investors to the most profitable production. Eg, we have excess houses, China has ghost _cities_.
TeaParty1776 8 hours ago
@TeaParty1776 Listen, I'm going to explain something to you that you will not hear anywhere else: paper money and gold function in exactly the same way. Neither one has any intrinsic value. The ONLY value of either is its value as trade. The purpose of money is to allow easier trade across wider groups of people. It doesn't matter if it's made of gold or door knobs. One advantage gold had back in the day is it is harder to counterfeit--even that is not true anymore.
greg55666 8 hours ago
@greg55666 There are no intrinsic values. Gold has objective value because man's mind identifies its properties as valuable for trading and trade as furthering man's life. Man's mind has not identified paper as valuable for trading, thus legal tender laws force the use of paper that people would not choose to use. Will you trade your gold for my paper? Paper is good for socialists who pretend that socialism is low cost. Paper encourages unsustainable investments which fail, causing depression.
TeaParty1776 2 hours ago
@TeaParty1776 , you fucktard can't speak about "Man's mind", a mentally retard tea-bagger like you need your fucktard mind seen by a shrink.
"selfish rational morality" walk the talk, dumbfuck: Go kill your children and save money to pay your shrink's fee and insurance rate hike. You are a waste product of freak nature. Since you're just a pile of shits, your offspring are just more shits, over supply of shits is bad investment. Kill your children, save $ for your selfish enjoyment.
chapsroc 1 hour ago
@TeaParty1776 , you're crazy, go kill yourself for your "selfish rational morality". No one give a fuck about what you are saying, you're just torturing yourself by talking narcissistic shits inside your painful asshole! A "selfish rational moralist" whatever the fuck you meant by that no one cares, just go kill yourself, and spare yourself the embarrassment and pain.
chapsroc 1 hour ago
@JamesJSimpson "It's like adding water to soup"
Correct! And then, when the bank repays the Fed, the water is removed from the soup.
jimmyrtle 5 days ago
@jimmyrtle This merely complicates the fraud.
TeaParty1776 2 days ago
@jimmyrtle Here is why they are so dumb. I owe $100K in school loans. Which would I rather use to pay it back, good thick wholesome soup, or water? Water obviously. Please, government, add more water to the economy. They don't understand how inflation functions. (Then again, they have trouble putting their pants on in the morning.)
greg55666 8 hours ago
@greg55666 Yes, I understand the soup:water analogy.
Do you understand that a short term loan, quickly repaid, doesn't make
your soup watery?
jimmyrtle 5 hours ago
@jimmyrtle Are you talking about fed loans? Of course. The truth is even the water analogy is dumb, because the economy is a ship--we all float up and down together. If a car goes from $5000 to $10,000, then our wages will too.
greg55666 4 hours ago
@greg55666 , there is something wrong with water/ship analogy...
Try fish, non-native artificial game fish and bait fish. The people of the mass are bait fish;
big corporations are large game fish such as large bass, pikes, walleyed, etc.,
Park and game wardens, biologists are the economists and "professionals" who serve the government that answer only to lake owners (bankers) who makes money off the hardcore fishermen (the greedy idiots who worship and slave to money).
chapsroc 3 hours ago
@chapsroc , The economy, the whole globe now, is one big brutally fake scam, artificially managed and manipulated by the bankers and their big corporate elites cronies.
chapsroc 3 hours ago
@greg55666 Yes, the $16 trillion everyone is whining about was short term loans by the Fed, long repaid.
jimmyrtle 2 hours ago
@JamesJSimpson Its worse than mere inflation. The Fed's funny money and funny bank accounts lower interest rates. Lower interest rates affect producers' goods more than consumers' goods. Business is mislead and encouraged to invest in more factories, raw materials, machines, labor, etc. But there is no real savings for investments. Consumers are consuming, not saving. But the phony economy booms, eg, stocks, dot.coms, houses, etc. The bubble bursts. Capitalism is blamed. More inflation. Whee!
TeaParty1776 2 days ago
@TeaParty1776 See _Human Action_ by Ludwig von Mises, an "Austrian" economist, ignored by mainstream quacks, who predicted the Great Depression by noting that roaring 1920s technology and stable prices was a contradiction. Tech lowers prices. Thus, the Fed must be inflating. Austrians also predicted our current mess. See Brian Simpson's, "Money, Banking & The Business Cycle" (Ayn Rand Bookstore).
TeaParty1776 2 days ago
Vote For Ron Paul 2012!!!
rogeralejandro2007 3 weeks ago
Comsmic Fork does not have a clue. The real truth is that the public has voluntarily put themselves into debt. And they vote for libs in state and local govt's which spend every dollar they get from us. And the libs have attempted to get rid of poverty buy taking from taxpayers and giving the $ to others. So now we are 15 trill in the hole and poverty is the same as it was when Johnson and libs and Rhino's raided the social security fund.
himsil 1 month ago
@himsil You say "the gov'ts which spend every dollar they get from us." What you mean is "the gov'ts spend every dollar WE get from us." We are borrowing and spending our own money. Poverty is the same as it was because you continue to support republicans, who take money from the 99% to give to the wealthiest.
greg55666 2 weeks ago
@greg55666 Govt steals from, subsidizes and regulates private investors. This decreases production.
TeaParty1776 8 hours ago
@TeaParty1776 steals from AND subsidizes? Wow!
greg55666 8 hours ago
@himsil Acc/to liberals, poverty is worse (as long as they are not blamed).
TeaParty1776 8 hours ago
@marketanarchist2011, the general idea is that it encourages saving, which encourages price drops (to entice buyers), which further encourages saving (why buy now, when it'll be cheaper in a week?), and so on. Follow the logic and it leads to a slow down in production (since demand drops), which raises unemployment and further diminishes demand.
This vicious cycle is why (most) economists favor a low, steady inflation (say 3% per year) rather than get to close to negative territory (deflation).
grantcivyt 1 month ago
@grantcivyt Saving and only savings increases production from a hand-to-mouth economy. Socialism destroys savings for consumption. Marx hated _Capitalism_, ie, producers goods and long-range investment for spontaneous creativity (not production)
in the workers paradise. We are headed back from industrialism to hunting-gathering. Progressive? Steve Jobs was progressive. Obama is reactionary.
TeaParty1776 2 days ago
@TeaParty1776 Can you elaborate on what you mean when you say savings increases production? Decreased demand for goods, which is the implication of augmented savings, would tend to depress prices and prompt a corresponding decrease in supply to match. In order to decrease supply, production would fall.
grantcivyt 2 days ago
Decreased demand for consumers' goods frees resources for producers' goods which produce more, better and cheaper consumers' goods. Economic progress needs long-range planning, not merely production for immediate consumption. Mainstream economics is Pragmatist, lurching from immediate situation to immediate situation, like a drunk who evades the coming hangover. Economics in One Lesson by H. Hazlitt says look to indirect, unintended, long-range effects of economic action, including govt policy.
TeaParty1776 7 hours ago
@TeaParty1776 , trash talk from you fucktard tea-bagger is like an old whore trying to sell your "services" to passer by. You fucktard tea-bagger forget that you (your ideology) is just an old, failed, used and ugly sagged bitch that had been "tried" by every men in town... but now not even a donkey wants your "services."
Don't understand what I'm talking about? Read this comment and all my previous comments about you. Or put a bullet in your head! Or some else will!
chapsroc 6 hours ago
Why is deflation bad?
marketanarchist2011 1 month ago
Comment removed
federal401 1 month ago
@federal401 Wow, someone that understands inflation and deflation! Thank you for that!
Not only that, inflation makes our debt cheaper and easier to pay off.
greg55666 2 weeks ago
@federal401 Deflation is a very necessary part of the market and it arises after assets are overpriced in the first place.The incentive to buy a newer vehicle is in the features of the newer model. $7,500 would open up to a larger market, flooding the auto industry with sales. What is more affordable $600/month or $150/month? Exports would thrive in this great deflation(what are,u a keynesian?) It would greatly benefit anyone with savings as opposed to inflation which steals it.
quinnrasta 3 days ago
@federal401 And how do people live while waiting for a lower price? Prices must be free to change with demand, cost, competition. Prices are signals of how people value something relative to everything else in an economy. Ten chickens for one cow. Money aids trade but does not change reality. Prices coordinate production. Govt money uncoordinates production so that real relative values are unknown. Inflation causes asset bubbles which pop and are blamed on capitalism.
TeaParty1776 2 days ago
@marketanarchist2011 It decreases socialist inflation and politically demanded asset bubbles. In a capitalist economy, with private money and unregulated investing, there will be a minimum of inflation and deflation. When govt inflates money and bank accounts, there will be a boom-bust cycle. The bust will destroy the inflation, deflating the counterfeit money and bank accounts. This will encourage investors to less risky projects.
TeaParty1776 7 hours ago
@TeaParty1776 , STFU! Go elect Ron Paul for prez, until you do that, you're just a stupid tea-bagger talking shits out your mouth no credibility whatsoever. Then come back here, I'll either school you on real economics, or put a bullet to your head to end your misery. LMAO!
chapsroc 6 hours ago
This is contentious. If people want their money out of a certain bank, it's their choice, it's not up to the Fed to make sure banks survive. In a free market system if I take my money out of a business and it fails, you let it fail. If banks want to prevent runs, they can either buy insurance, or the individual can do that themselves, insure their savings accounts. But the Fed prints money each year inflating the money, its so called 'purpose' has never been utilized, end the fucking Fed.
Otzmatron 1 month ago 4
@Otzmatron Uh, I'm sorry to have to point out something so obvious I feel stupid even saying it, but the banks do buy insurance. It's called FDIC.
greg55666 2 weeks ago
@Otzmatron Bank runs are caused by govt inflated, less valuable money that people want to spend before its even less valuable. Or, if banks issue too much paper money relative to their own gold, people want to get their own money before it runs out. See Richard Salsman's two books on US banking history and how the Fed weakens banks with bad money and bad investments. Less regulated 19th century banks were more solvent because of gold and less bailouts. Bailouts encourage bad investments.
TeaParty1776 2 days ago
This highlights the importance of understanding economic & financial history, a sub-set of financial literacy, which in the midst of all the financial reforms has slipped through the cracks. This complex system can't function if consumers of financial products don't know the basics. Successful completion of a course in basic finance should be required in every high school and college curriculum.
MikeJacobsJr 2 months ago
@MikeJacobsJr
I'm afraid a lot of what is taught like the stuff in this video is total nonsense.
The reason for the collapse is not that more money printing was not forthcoming. Rather the root cause of the collapse was fractional reserve banking - which is another case of creating money out of thin air.
Fractional reserve banking is nothing more than counterfeiting and when that counterfeiting is exposed in a bank run, it all comes crashing down.
orangedac 2 months ago
@orangedac Fractional reserve does not create money out of thin air.
It's not counterfeiting either. If banks could create money out of thin air, why would they worry about a bank run? They can just create more out of thin air.
jimmyrtle 2 months ago
@jimmyrtle
fractional reserve does create money out of thin air. the notion that the supply of money is restricted to the amount of deposits times some multiplier is a lie. Why do you think banks in 2009 were told it was OK for them to maintain a zero reserve ratio (i.e. no reserves relative to currency issued).
most of the banks now are insolvent yet continue to operate. how is that?
paper money is fraud and like all fraudulent systems, it relies on theft of peter to pay paul.
orangedac 1 month ago
@orangedac "fractional reserve does create money out of thin air"
No, it creates money out of deposits. No deposits, no loans, no new money.
"Why do you think banks in 2009 were told it was OK for them to maintain a zero reserve ratio"
Source?
"most of the banks now are insolvent yet continue to operate"
Insolvent means unable to keep current on debt payments or assets less than liabilities.
Which banks do you feel meet either definition? Where's your proof?
jimmyrtle 1 month ago
@jimmyrtle
Check out capital reserve ratios for banks in 2008/9. It went to 0%.
But even that is beside the point when the Federal Reserve handed out 16 trillion in taxpayer money to banks. They just turn around and buy govt bonds at a higher yeild which effectively means free money. Why do they need free money - reason - they are insolvent.
Google : Audit of the Federal Reserve Reveals $16 Trillion in Secret Bailouts
Now where's your prove they are not insolvent?
orangedac 1 month ago
@orangedac You're confusing reserve requirements (they hold a certain % of deposits in reserve, not to be lent out) with capital requirements (they need a certain amount of capital to support their assets).
If their capital dropped to zero, it's because they lost big money on their assets (mortgages), not because the government allowed lower requirements on their deposits.
The Fed gave short term loans, no taxpayer money involved. Which bonds would they buy and at what rates?
jimmyrtle 1 month ago
@jimmyrtle
The banks are beyond insolvent if they needed 16 trillion.
As for no taxpayer money involved, are you kidding. Where do you think the fed gets 16 trillion from? Who do you think ultimately backs the fed? Money that is printed up dilutes & destroys the wealth of savers & creditors.
All kinds of fancy terms are used to explain fiat money & paper shuffling but at the end of the day the Federal Reserve is little more than a money counterfeiting organization for bank cronies.
orangedac 1 month ago
@orangedac They didn't borrow $16 trillion at once, that's cumulative. If they borrow $1 trillion and pay it back in a week and then borrow $800 billion, that's $1.8 trillion, even though only $1 trillion was outstanding at most.
The Fed creates the money, that's where they get it, no taxpayer money needed. Why does a bank that creates its own money need taxpayer backing?
Counterfeiting is when unauthorized persons create money....the Fed is authorized, not counterfeiting at all.
jimmyrtle 1 month ago
@jimmyrtle
16 trillion was lent out against depreciating assets in a short period of time. It took from the 1950s to 2008 to accumulate a total debt of about 14 trillion for all of America while 16 trillion was given in the span of a few months. Can you spell insolvent.
Counterfeiting is theft. Whether a bunch of crooks bribe politicians to declare it as legal is irrelavant. It is theft of wealth from productive society.
Watch this video before posting any more v=bhMacPvc5qc
orangedac 1 month ago
@orangedac Trillions in short term loans that have already been repaid.
Yes, counterfeiting is theft. The Fed doesn't counterfeit.
That book is a joke, filled with errors. No wonder you're so confused.
jimmyrtle 1 month ago
@jimmyrtle
Common sense will tell you when banks are leveraged up 40:1 on mortgages that have depreciated for 3 years straight, they have the capasity to repay nothing. Instead creditors, savers and taxpayers have been ripped off via money printing which has been channeled to banks though below market rate govt loans which banks used to purchase govt bonds at higher rates.
Counterfeiting is theft regardless of what fancy term is used. You''re the one who's confused. Watch the video.
orangedac 1 month ago
@orangedac Banks have been deleveraging for 3 years. They have over $1 trillion in excess reserves. They've reserved 10s of billions for losses.
The video and the book it is based on is a joke.
jimmyrtle 1 month ago
@jimmyrtle
Banks have deleveraged their gambling losses onto the backs of taxpayers. When banks are leveraged 40:1 on real estate that's going down in value, there's no way a "profit" magically appears.
Excess reserves is printed money handed via the back door to banks by the Fed at the expense of taxpayers, creditors & savers. Incidentally these same banks are shareholders of the Fed.
Counterfeiting is theft. No amount of fancy paper shuffling or terminology will change that fact.
orangedac 1 month ago
@orangedac
Which losses do you imagine they've put onto the backs of taxpayers?
How did they do it?
No, excess reserves are not handed to the banks by the Fed.
Excess reserves is extra money the banks DEPOSIT at the Fed. Over and above the required reserves.
You've got everything almost exactly backwards. I blame it on the silly books you read.
Like Creature From Jekyll Island. What a steaming load of crap that was.
jimmyrtle 1 month ago
@jimmyrtle
Did you sleep through the entire 2008 securitized real estate bust which has been offloaded onto taxpayers? The govt aka taxpayers are currently backstopping trillions of mortgage backed junk on the balance sheet of the Fed.
Where do you think the record profits of 2010, 2011 for these banks came from? Where do you think money to deposit as excess reserves at the Fed comes from when bank's leveraged real estate portfolios have performed disasterously? Thin air?
Clue in!
orangedac 1 month ago
@orangedac The banks didn't put losses on the taxpayer, Fannie and Freddie did that.
jimmyrtle 1 month ago
@jimmyrtle
Fannie and Freddie did but it was not mortgage losses per say but LEVERAGE on mortgage losses that amplified the economic mess. Now guess who was gambling around with leverage, selling credit default swap on debts, watching it go boom and then offloading it on the taxpayer. Also guess what institution was used to offload the losses.
Its time to end this scam called the Federal Reserve. Intrinsically worthless paper money only invites theft, corruption & croneyism.
orangedac 1 month ago
@orangedac Feel free to send mean your intrinsically worthless paper money.
jimmyrtle 1 month ago
@jimmyrtle
I'd be more than glad to exchange my intrinsically worthless paper money for American Eagle gold coins (worth $1800) which the govt has stamped with a value of $50.
When can we make this trade? I'm willing to take a few thousand coins off your hands.
orangedac 1 month ago
@orangedac Why would I give you anything for your worthless paper?
I'll reimburse you for postage, but that's as high as I'll go.
jimmyrtle 1 month ago
@jimmyrtle
Come on now, can't we cut a deal where I exchange the intrinsically wrothless paper for the gold price the Federal Reserve still quotes on its books i.e. $42/oz.
After all, if the paper is worth what it says it and keeps its value, the $50 stamped on govt issued 1 oz American gold eagle coins should surfice.
Sillyness aside, could you tell me why a gold coin which was valued at $50 is now $1800/oz as measured by intrinsically worthless paper?
orangedac 1 month ago
@orangedac Why was gold worth $850 31 years ago and only $260 12 years ago?
Supply and demand.
jimmyrtle 1 month ago
@jimmyrtle
Supply of gold has not chaned by much, why has demand?
Fueling economic bubbles on the basis of borrowing money has run out. Govt debt 31 years ago was < 1 trillion and now is 15 trillion. Private debt is many multiples of that.
The market no longer believes more debt is going to bring more growth. The only scam left is to devalue the paper which essentially is a default on debt. Thus people are fleeing paper.
orangedac 1 month ago
@orangedac And why does the govt hang on to that worthless relic, gold, that FDR stole from productive people? Is govt afraid that gold in citizen's hands will cause them to wipe their ass w/Fed Reserve Notes? Note this!
TeaParty1776 2 days ago
@jimmyrtle 1923 German inflation. A wheelbarrow of sacred govt paper for a loaf of bread. Workers demanded wages in the morning so they could buy anything prior to decrease in the value of money later in the day. Buy anything,. even coocoo clocks, to hold value. Trash the Fed. Back to gold. Tar and feather Bernanke, Krugman.
TeaParty1776 2 days ago
@TeaParty1776 German inflation what?
What are you responding to?
Do you imagine the US had no inflation (or deflation) under the gold standard?
jimmyrtle 2 days ago
@jimmyrtle It was just an example of the destructiveness of govt inflation.
Coincidences are not causes. During the US gold standard, there was occasional govt intervention in money, banking. See Richard Salsman, Murray Rothbard. Govt inflated and bailed out banks which used the inflation to make loans which looked good because prices rose. The gold standard decreased the govt's destructiveness, which is why FDR and Nixon split gold from the economy. Without gold, economies float weightless.
TeaParty1776 3 hours ago
@TeaParty1776
Repaid, short-term loans are "an example of the destructiveness of govt inflation"? How?
"Govt inflated and bailed out banks which used the inflation to make loans which looked good because prices rose"
You think banks like inflation?
jimmyrtle 2 hours ago
@jimmyrtle What is TARP, and what is this thing that bank of America is trying to regain with 75 trillion dollars? Really I don't know what you are reading but i suspect that you watch way too much television.
se7ensnakes 2 days ago
@se7ensnakes TARP was a Treasury Department program.
If you think the Fed and Treasury are the same, you're dumber than I thought.
$75 trillion? What orifice did you pull that from?
jimmyrtle 2 days ago
@orangedac he apparently is unable to understand what is going on. is there any doubt? It is simple text book reading that fractional reserve banking causes inflation.
se7ensnakes 2 days ago
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@se7ensnakes
"It is simple text book reading that fractional reserve banking causes inflation"
That's awful!
During what period in America's history did we NOT have fractional reserve banking?
jimmyrtle 2 days ago
@orangedac Or a bunch of mainstream economist help politicians rationalize "free" money to aid the economy they destroyed in the first place.
TeaParty1776 2 days ago
@jimmyrtle i am sorry that you are unable to comprehend how Fractional Reserve Lending works. Yes Fractional Reserve Banking does create money out of thin air because the money use to make loans do not come out of deposits. This is commonly known and the banks admit to it. Just read MODERN MONEY MECHANICS and A PRIMER ON MONEY. Additionally there is a the M2 and M3 money supply. Where do you suppose that comes from.
se7ensnakes 2 days ago
@se7ensnakes I know how it works.
A bank lends out a portion of deposits.
No deposit, no loan.
Simple as that.
jimmyrtle 2 days ago
@jimmyrtle The question of whether or not fractional reserve lending create money and inflates have long been admitted. Once again I am sorry that you cannot come to terms with the reality of what is going on.
se7ensnakes 2 days ago
The link is broken is there anywhere I can watch this in its entirety.
JimmyRose1 2 months ago
What we need is 100% banking and a new monetary system.
se7ensnakes 2 months ago
@se7ensnakes How does 100% banking work?
jimmyrtle 2 months ago
@jimmyrtle Fractional reserve banking works like this: 1) new banks open and its first customer deposits $1000, in a debit card account. 2) The second customer walks in and wants $500 credit card, which he gets based on the $1000 deposit. So the first customer and the second customer spends all of their money that means that there is $1000 in the economy and an additional $500 dollars from the credit card. This is how most of our money is created. So in a 100% reserve banking either
se7ensnakes 2 months ago
the credit cards does not exist or the debit card customer cannot spend the 500 dollars. 100% accountability. hence the multiplier effect does not spiral out of control.
se7ensnakes 2 months ago
@se7ensnakes
That makes no sense. Are you saying no one can borrow money?
jimmyrtle 2 months ago
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@jimmyrtle Do you know what the word "EITHER" mean? Are you mentally challenged?
se7ensnakes 2 months ago
@se7ensnakes How does 100% reserve banking work?
Unless you're mentally challenged?
jimmyrtle 2 days ago
BANKENISM: THE MAFIA ON STEROIDS.
se7ensnakes 2 months ago
The money system that we have inherited, i.e. - The Bank-Debt Based Fiat Money System, (which is the national currency system). For the system to function, the currency has to be scarce, and has to be maintained in scarcity. The job of The Central Banks is to create, and to maintain the scarcity of the currency. If they don't do this, the currency becomes valueless, and stops functioning. (Continued Below...)
CosmicFork 2 months ago 13
@CosmicFork Uh, did you even watch the video?
greg55666 2 weeks ago
Now, of course what that means is that you have the whole ugly competition for the scarce resource that's there; we have the competition for the artificially scarce dollars, or euro's, or whatever, National Bank-Debt Money. This is the paradigm we are living with, a total monopoly of Bank-Debt Money. That is the thing that nobody questions... it has to be a monopoly, and it has to be Bank-Debt Money. Why? What a manipulated, rigged monetary system, designed to benefit a evil, rich elite !!!
CosmicFork 2 months ago 13
@CosmicFork Uh, did you even watch the video?
greg55666 2 weeks ago
@CosmicFork No, designed to aid the middle class and poor with funny money. But banks are used by govt to funnel it into economy. So banks prosper until economy crashes.
TeaParty1776 2 days ago
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"Once depositors start trying to take their money out of the banks, there is a strong tendency for the quantity of money to fall. Each dollar of cash which is withdrawn from a bank had been backing several dollars of deposits"
I would appreciate it if someone could explain this to me. Maybe it's that I didn't hear him correctly since this is a fairly old video.
leonpimpz 3 months ago
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leonpimpz 3 months ago
The Fed is suppose to help banks get out of runs. They did not do that at the beginning of the great depression. Instead, they shrink the quantity of money in the system by over a third. This resulted in the closing of over 3000 banks in the USA and the deflation of the economy. Over thirty percent in unemployment resulted.
vkorchnoifan 3 months ago
@vkorchnoifan.... ≈ 9,000 bank failures, or 1/3 of the total at the time.
TampaTypeS 3 months ago
@vkorchnoifan if banks were to operate on 100% then this would not be a problem, and no federal reserve needed.
se7ensnakes 2 months ago
@vkorchnoifan Canada's banks OK because no anti-branch laws then and today. Govt is destructive regardless of the complexity of socialist lies.
TeaParty1776 2 days ago
The New World Order Globalist bankers will install their man Herman Cain.
yakyakyak69 3 months ago
@ladic
Faggot.
LogicalFlawDetector 3 months ago
Idiots, he wasn't supporting bail outs. Listen carefully: he wanted the FED to expand money supply to counter the deflation from the stock market burst. The FED did the exact opposite: it constricted money supply and made it worse. Now, Friedman was for abolishing the FED; but given that we have a central bank, it had certain roles during its stay.
LogicalFlawDetector 3 months ago
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Where was "the invisible hand" when our economy went south? Years of Friedman-inspired deregulation, executed by father and son Bush, left financial markets in the hands of -- well -- invisible hands. Now off their regulatory leashes, financial institutions could create, invest in, and manipulate new, exotic, unstable, ungrounded, risky, but highly profitable, financial products -- mainly derivatives and securitization devices, such as subprime mortgage packages.
OrganNLou 3 months ago
Milton Friedman was a fraud who wanted to have it both ways.
For example, lets say the FED didn't exist, and there is no such A-bank whose real money would dwarf all other banks so this A-bank would act voluntarily as the leader of the pact in setting interest rates policies and would act as "lender of last resort" to other banks... (a) would all banks willing to follow A-bank's lead?; (b) A-bank risking its depositors money making loans to stressed banks? (c) This setup = "free market"?
chapsroc 3 months ago
Newt on Ben Bernanke - "I will fire him tomorrow. I think he’s been the most inflationary, dangerous & power-centered chairman of the Fed in the history of the Fed.” I would also describe OBAMA the same way.
UCSDEngineerDoctor 4 months ago
Milton Friedman's "free market" fraud and Fed fiat money printing scheme is a corrupted ideology front for banks and their corporate cronies to commit economic crimes on global scale.
"Free market" and deregulation allow the Wall Street bankers to create "bank run" by their fellow bankers, I am talking about the quadrillions of financial derivatives and mortgage backed sec. swaps, etc. that are 1000s times greater than depositors bank run... FED's trillion$ now go to these banksters!
chapsroc 4 months ago
@chapsroc There has been no free market in the US since the late 50's. What you are describing is corporatism, which is not at all a free market system.
pretorious700 4 months ago
@pretorious700 , Your old "free market" of the "Pure Capitalism" are just craps. Your shit-eating capitalism with a "C" doesn't exist, it never had, because capitalism itself is a front ideology for the upper class. But that is too complicate for you.
"Free Market" is an ideological term, Adam Smith actually used "the invisible hand" of the market and its self regulated tendency -- it's not a license to commit frauds as advocated by MF and Reagan ideologically driven "free market" craps.
chapsroc 4 months ago
@chapsroc This is a religious-socialist savage who only knows sacrifice, not mutually selfish trade.
TeaParty1776 2 days ago
@TeaParty1776 , hey tea-bagger fucktard, WTF are you on? You tea bagger dumbass sure have a lot of free time. My comments were posted 4 month ago, either you dumbass get a real job and stfu, or learn to speak articulately, be specific which one of statements were you referring to? State your fucktard point, why you agree or disagree. Unlike you retard tea-bagger idiots, I have better thing to do...
chapsroc 2 days ago
@chapsroc If you like sacrifice so much, stick a rusty knife down your throat.
TeaParty1776 2 days ago
@TeaParty1776 , mother fucker tea-bagger scum, the only thing that I'd sacrifice is to cut off your head and stuff it back in your mother's ass or stick your head on Jesus's cross! Insert your head back in your tea-bagger shitty asshole!
chapsroc 2 days ago
@chapsroc
You are right about the derivatives that risks the future of the global economy.
However, Friedman's free market theory does not include having a Fed "big government" institution to bailout the banks. He was against such policy because it passes the bank risk to the little guys and removes the danger that bankers need to feel when they abuse lending limits. Friedman later said he would abolish the Fed. He wanted a system that made depositors more aware and bankers take less risk.
fred00111 3 months ago
@fred00111 , you're a very laughable person, you fit into what I call tin box square-headed. Milton Friedman was an typical idiotic Jew whose dogmatic polemics created monsters ( i.e. the Fed+unchecked greed) that eventually veered its head and bid his ass.
MF's entire interest rates and price stability theory rest solely on the very structure of the Fed who can print fiat money from which it derive it "power" to set interest rates. "free market" creates derivatives mkts.
chapsroc 3 months ago
@fred00111 Derivatives from money are productive. Derivatives from govt counterfeit merely expand production.
TeaParty1776 2 days ago
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@TeaParty1776 I meant:Derivatives from govt counterfeit merely expand the destructiveness of inflation.
TeaParty1776 2 days ago
@TeaParty1776 , you fucktard tea-bagger mental parasite, without gov't backing there is no money, you stupid tea-bagger shitty scum!
chapsroc 2 days ago
Friedman also revealed his own hypocrite on "free market" psychology. He obvious didn't trust the "market" of depositors on bank run psychology that he basically advocate a "central bank" to simply print paper money to give to the depositors until they are satisfied and stop withdrawing their money from the banks. A "free market" with monopoly "money"? What an intellectually coward ass hole? This guy is morally bankrupted!
chapsroc 4 months ago
@chapsroc
The Fed's monetary system is the same as it was in 1930 - the fractional reserve lending rule allows banks to lend about ten times more than their assets. Money is created this way but none is printed. This means that the system will need to print money whenever there is a run on the banks. Friedman did not say he preferred this system, in fact, he implies not. He just tells us how it should have been managed during the crisis after the 1929-30 market crash.
Got it?
fred00111 3 months ago
In this video, this squared-head retard Milton Friedman admitted the fallacy of his monetary/interest rates theory. The key to understand Friedman's fraud is the role of a "central bank" to create money out of thin air which IS EXACTLY WHAT THE FED HAD BEEN DOING SINCE RONALD REAGAN ERA, and not by coincident, Friedman was the economic adviser to prez Reagan.
chapsroc 4 months ago
@chapsroc the Fed has been monetizing government debt since the 30's...your take on Friedman is ignorant at best.
pretorious700 4 months ago
@pretorious700, you're yet another retard speaking from inside of your ass. You stupid blob forget the fact that the US dollars was backed by gold up until 1971, when Richard Nixon unilaterally took it off of the gold standard. Do some research before you open your stupid mouth! Even after 1971, and the Vietnam war financing needs, the Fed didn't print as much until Friedman and the b-grade Hollywood actor name Ronald Reagan that US started print money as a policy to grow the economy.
chapsroc 4 months ago
The key points Friedman makes begins at 1:30. "A growing economy needs additional money in order to prevent deflation and problems." He points out the Fed failed its mandate and actually stifled the availability of money. The recent bailouts in the banking system is not the same situation. There was no run on the banks by the public. They lost massive profits due to irresponsible lending practices and should have been allowed to fail for doing so. The Feds role is not to bailout banks for such.
Complaintdesk 4 months ago
@Complaintdesk A growing capitalist economy will also produce more gold and also lower prices. There is no problem. Until socialism.
TeaParty1776 2 days ago
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Complaintdesk 4 months ago
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Complaintdesk 4 months ago
To all, this video is NOT an opinion piece, it is an education piece. Friedman has never had a high opinion of the Federal Reserve but he is giving a factually correct history lesson. It is because of this point in history that Friedman has his opinion. When an institution fails to perform its primary function and in doing so causes a worldwide financial collapse, that institution does not deserve to be held in high regard.
Robbob9933 4 months ago
just who are the banks lending to? milton is nuts
stealthgerm 5 months ago
“There is one good thing about Marx: he was not a Keynesian.” - Murray Rothbard
zdrux 5 months ago in playlist Milton Friedman
@zdrux Why do people insist on using this stupid quote?? Marx could not have followed Keynesian philosophy because Keynes was born in the same year that Marx died. Marx wold have, however, embraced Keynesian philosophy.
Robbob9933 4 months ago
He is isn't really defending it, more like explaining it.
Mezey5 5 months ago