Anatomy of casino capitalism Pt.7

[aniketranade]

Man!....this is all very informative......the only person who can solve this mess......Palin!!!......GO STUPID AMERICA!!!.........Pleease elect her next time....I want my laughs.....:))))))

[thomasst2]

I've never heard so many economic errors in my life. This "General Equilibrium" Theory nonsense is killing us. If it was true and natural, then Govt shouldn't have to regulate prices of futures markets (or of anything for that matter).

Economies are fine with stable currencies if prices are allowed to fall as people save. Devaluing paper to gold destroys purchasing power, impoverishes, and transfer wealth from savers to spenders. Money is not neutral.

[thomasst2]

Interest rates are supply/demand for CREDIT, not money. Money is a present good to trade for present goods. Credit is a present good (one's savings) traded for a future good (one's demand for a current good but has no present savings for). Current savings trade for future savings.

There's a trade off between consumption and saving/investing. Prices rises during consumption (low savings, which raises interest rates) and fall during saving (lowers rates) and leaves saved resources for investment.

[mrzack888]

i need to re watch this clip again, not sure if she is evil or not....

[loren1283]

After the financial crisis the only people I can take seriously are the ones who saw it comming, and those are austrian economists. These people also advocate gold. Every economist that didnt see this comming should retire because they are in effect part of the problem. If the ammount of gold in the system limits the amount of money in the system then the currency will rise as the demand for more money rises. No such thing as not enough gold.

[uche007us]

this is a little confusing, what does she mean by "theres not enough gold"? Isnt that what we wont in a commodity backed money? . Anyway if we didnt want to give russian/southafrica an advantage then use some other commity to value the money.

Just stop using fiat money. The Realnews is starting to dissapoint me but I will keep my subscription in hope that they will invite a Ron Paul or Peter Schiff type to counter her claims

Crosses fingers

[198madman]

Her solution of empowering the private banking cartel known as the FED, to centrally control the economy is laughable.

Without the skimming off of the wealth of Nations by central banks there would be no destructive boom/bust, "business cycle." And bank failures would be limited in scope and duration.

[thomasst2]

She's embarrassingly misguided. She apparently believes in "General Equilibrium" which basically means after prices reach supply/demand market clearing levels, prices shouldn't change. It ignores prices falling as people save (consumer demand for money) and rising as people consume (demand for consumer goods).

She ignores the trade off between consuming and saving for investing/producing. She favors inflated money to support both. But there are only saved resources for one or the other.

[asphyxiafeeling]

EXCELLENT interview. thank you realnews! :)

[marpoq]

wow this has got to be the most parts i've seen in a real news interview

[OmarThePug]

The federal reserve system can work, but we need a Congress that respects the necessary growth of the productive economy. If Congress doesn't regulate trade imbalances and cost foreign wars, then all we will get it debt that is monetized into a inflation tax. Congress has the power to enact a pseudo credit system for infrastructure enhancements, but they would rather deal in pork. That's a failure of leadership.

[bbburton]

If gold shouldn't be considered money, then why does the Fed own all the gold reserves? End the Fed. End central banking. Gold and silver should be the only form of money.

[loren1283]

HOGWASH, gold is a commodity the amount in existance is what dettermines the price....how can you say there wasnt enough gold?

[MarquisdeBarrabas]

No one is questioning that gold is a commodity, but whether it can artificially be decreed as the measure of, among other things, economic growth.

[rajasmasala]

loren1283,

There is a valuation of gold separate from currency definition, based on supply and demand. The problem here is that this value may cause a money shortage if the total assets of the nation are worth more than its banks' gold reserves.

[rajasmasala]

assets in circulation*

[MarquisdeBarrabas]

Excellent interview, TheRealNews.

[PersianPaladin]

Gold bugs are idiots.

[RCinPAWA]

Spoken like someone who doesn't own an ounce.

[RCinPAWA]

Watch the documentary called "Life and Debt" if you want to get a glimpse at what's coming to this country.

There's plenty of gold and silver to have a gold-standard currency. Tthe closer we come to pure cpitalism the better off we will all be. At the moment we're about as far away from it as we can get. The bottom line is that we in America are screwed. We are slumping towards income parity with the rest of the world. Get your gold and silver while there's still time.

[blackiron60]

Considering that the total amount of gold ever mined, and I mean EVER mined, could barely fill two olympic size swimming pools I doubt very much that it could indefinitely fuel the global economy.

[RCinPAWA]

I'm not sure what you mean by "fuel the global economy." What fuels the global economy now? Why not gold (or other commodities if you prefer) as a store of value? Are you advocating a permanent fiat currency?

[tatamtatam1]

I'm afraid no re-regulation is possible anymore. finance is right at the centre of the power structure of the economy, tied in with all other sectors. capitalists won't let it be "re-regulated", it's too lucrative.

unless they and their entire economic system is overthrown.

as current state structures are designed to shield capitalist classes from the majority, this requires massive mobilization and can only be a long-term process, but I don't see any other serious alternative.

[sirellyn]

I'm really glad they are interviewing her and very happy they are doing this. I'm shocked to hear the other point of view some times but it's still important to hear it.

[sirellyn]

The government shouldn't set the price of gold. Ever! Using price controls like that are just as useless as fiat money.

The government only states the value of a dollar in gold. 1 oz of gold for 20 dollars. Thats it!

The reason they got into trouble in the 1970's is because they lied about how much gold they had. They would print 10 million more dollars of money and they only procured 20,000 oz of gold in the mean time.

They broke their own rules.

[MarquisdeBarrabas]

First you say the government shouldn't set the price of gold. Then you say the government should state how much the dollar is worth in gold, thereby setting the price of gold, as dollars is what you buy gold with.

Paulers baffle me.

As to the (in)adequacy of gold as a basis for national monetary systems, please listen to the first part of the segment again. You can't use something finite to measure potentially infinite growth.

[sirellyn]

No I stated government should define how much a dollar equals in gold period.

Next I said the reason they could "revalue" the dollar in the 1970's. (Which they should never do) is because they cheated. They no longer had enough gold to pay their obligations. Instead of admitting it, Nixon chose to abandon it completely in favor of fiat.

5,079,700,000 oz of gold in the world. 6,692,030,277 people in the world. 0.75oz of gold for every man woman and child. How many don't even own a penny?

[MarquisdeBarrabas]

Pauler, if you define how much a dollar equals in gold, you are setting the price of gold.

If you say that x dollars is the equivalent of 1 ounce of gold, you are setting the price of 1 ounce of gold at x dollars.

Yet according to you, 'the government shouldn't set the price of gold.' I'll let you work that one out.

[sirellyn]

Defining a unit isn't price fixing. Enforcing one unit to always always exchange for another unit IS price fixing.

If I state 1oz of gold is also known as a "mitmop". Thats fine. I later offer to store your gold and give you a certificate for one mitmop. Also fine.

If I start making more certificates without getting more gold, I'm committing fraud.

Later I can't pay out returned certificates so I tell you can't trade them in. I can't re-evaluate it, because 1 mitmop just means 20oz gld.

[sirellyn]

And sorry due to a typo 1 mitmop was supposed to mean 20 oz of gold.

I'm not trying to redefine it ;-)

[sirellyn]

I can't however say that 1 mitmop (20oz of gold) can be exchanged for 400oz of silver. Thats price fixing.

One is defining a term, the other is forcing you to exchange one for another.

[MarquisdeBarrabas]

The next time that you try to rationalize your inconsistency, make it shorter than 3 comments, it comes off a little desperate.

[sirellyn]

For someone who was asking for an explanation, you do come off as a little insulting. Which, if you are trying to support a point rarely helps. The name calling and so on would only seem to indicate you want to provoke.

Did you at least understand the explanation?

[fatpius]

love this series

[sirellyn]

There's not enough gold? Of course there is enough gold! You sub divide the amount! Heck even if you believe it isn't, pick another commodity.

Then we're told deflation is bad. People actually holding onto money will have it go up in value, so they won't spend. Of course people will spend! But simply having money is like having a savings account. Why do you think the US dollar was originally chosen as the world reserve currency? The amount of deflation will also be minor. 1-3% at most

[RCinPAWA]

"The amount of deflation will also be minor. 1-3% at most "

Are you referring to potential deflation in the U.S.? You may be right, but you know the currency is being debased and that hyperinflation will reach the hundreds, if not the thousands, of percent.

[sirellyn]

I was referring to if gold was used to back the currency. Because the population would likely grow a little bit faster than gold was able to be mined there would be deflation. But it would be minor, 1-3% at most.

The US isn't going through deflation right now. There was a huge selling spree to grab dollars for people to pay off debts. That helped prop up the dollar, but that is ending.

You are right, there will be/is inflation past 10%. - Hyperinflation.

[sirellyn]

Is this her honest belief of what fiat money is? She's mostly correct, but the way she says it is very incomplete. Fiat money is money literally by decree. By it's nature it's not necessarily based on the governments ability to tax (though it almost always is).

And commodity backed money isn't always gold either. It's literally money that is backed by some commodity. You could use "Big Mac" dollars. (Though I doubt that currency would work too well..)