Peter Schiff - Euro Pacific Capital Conference - Part 7

[ParapaDrifter]

"As this economy is falling apart, instead of the government understanding that its regulations and its taxes are the root cause of these problems... they are regulating and taxing even more. We are moving more away from a free-market model to central-economic planning. To decisions about resource allocation being made in Washington, for political reasons. Not being made in main street by individual entrepreneurs with profit motive." ~Peter Schiff

Post and repost!

[bjarnet3]

@ParapaDrifter +1

[ParapaDrifter]

@bjarnet3 so the answer is something like what Webster Tarpley advocates. Low or no interest loans for small business entrepenurs and a tax on derivative transactions, as a start!

[ParapaDrifter]

@ParapaDrifter high speed rail infrastructure, banker fraudsters thrown in jail and the FED nationalized,, as an end.

[bjarnet3]

@ParapaDrifter The problem with low interest rates is that both businesses and individuals do bad investments when the interest rates is low...

Let the marked set interest rates NOT CENTRAL BANKERS. They do not know what the correct interest rates should be... If Central Bankers knew what the interest rates should be,,, why not let them control food production,, energy production,, everything.

NO,, it is impossible for one group of people (Central bankers) to get all economic input correctly.

[ParapaDrifter]

@bjarnet3 my beef with interest is that it gives bankers undue leverage over the people and businesses (especially using fractional reserve gambling schemes) who actually produce things for a living. My perspective is that you can't have a sovereign nation whose people is controlled by private banking interests, no matter if it uses free market to set rates.

Put the value in production, not debt.

money is just a means to an end, the end is a product.

Thats how eye see it.

Competing currency?

[bjarnet3]

@ParapaDrifter Competing Currency is very, very good... FRB is fraud... Remember that if the marked sets interest rates,, it is actually you and me that decides what the interest rates should be.

Interest rates is a "subjective value of timepreference", because you value 100 dollars today more than you value 100 dollars tomorrow,, you prefere something sooner than later. You might value 110 dollars tomorrow more than 100 dollars today (10% interest).

Banks must meet EVERYBODYS timepreference.

[bjarnet3]

@ParapaDrifter Central Banking is just like Central Planning,,, it is undermining the free marked, and marked interest rates chosen by billions of individuals... They believe that they have the tools to control everything,, and they actually have,,, but they cannot look into the future,,, thats the fallacy.

Central Planners in the Sovjet Union also had thousands of experts and wise overlords,,, but it failed so incredibly,, they still live under apathy in many of the East European Nations.

[ParapaDrifter]

@bjarnet3 I'm not disputing that, I agree. I'm just trying to find what the proper role of a bank is.

[bjarnet3]

@ParapaDrifter I didn't think so either... Banks should lend out money to businesses and people who want to buy property. And they should pay, the depositors the interest payments.

Just look how insane the system is set up today,, now the interest rates is practically ZERO,, and still businesses cannot lend money. "Money is just a means to an end, the end is a product." This is absolutely true. A temporary store of value. And "Interest Rates is a subjective valuation of time preference"