It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
I think one of the causes of inflation is the injection of new money on the market
originally posted by: Phage
a reply to: StoutBroux
I entered this discussion because of the claim that interest bearing loans are somehow immoral. Do you agree with that sentiment?
Yes, but the growth is really dept.
There is nothing to back up the US dollar.
The banks can lend more than they actually hold.
So that is why creating new money to lend WITH interest will fail.
Canadian, US, etc national dept. Canada's public dept has only grown since 1975 and we are a first world country.
God said that usury = fail so far looks like he is right.
Lybia was lending money with no interest and Khadafi was going to base his currency on gold. Look at what is happening now, Khadafi is dead.
On paper the system works.
I am one of those people who think that money should tied to a physical finite resource.
Fiat currency, in case you didn't know what it was called
this fake money has failed time and time again throughout History.
If you don't see a problem its because you dont want too.
In a survey of economists, zero supported a gold standard. There are many reasons for this. The main advantage or problem (depending on your point of view) of the gold standard is that is severely constrains the actions of the government. It cannot use monetary policy to influence the economy. A common response to recession is to print money which a gold standard prevents a government from doing. This means it must use fiscal measures, but a gold standard limits these as well. This means a government cannot do much to combat a recession no matter how severe it is. Instead it must stand idly by and let the recession take its course. While some hardcore free marketers would agree with this, most economists recognise that if the government doesn’t intervene the recession gets worse. Source
Deflation is actually a good thing, because in a deflation prices drop and money becomes more valuable, so deflation encourages people to save money. Deflation rewards the prudent saver and punishes the profligate borrower. The way a society, like an individual, becomes wealthy is by producing more than it consumes. In other words, by saving, not borrowing. And during a deflation, when money becomes more valuable, everybody wants money. They want to save. Whereas during an inflation, you want to get rid of the money. You want to consume. You want to spend. But you don’t become wealthy by spending and consuming; you become wealthy by producing and saving.
They seem to forget that WE are the ones ultimately who allow the government to get away with this every time. The government works for us (put aside the reality for a moment) and so do those they appoint to regulate. If one or both are failing and hurting the people and the economy, then we have every right to demand they all step down and be replaced. Not at the next election cycle, where we just get more of the same, but right now.
But you have the same amount of time to post on ATS.
When there is too much money in circulation for the amount of value/work done and/or products out there, the value of that money will drop.
Deflation is actually a good thing.
originally posted by: Astyanax
a reply to: TheBandit795
But you have the same amount of time to post on ATS.
I have time to do things I find useful or entertaining. Videos peddling dodgy economic theories are, in my view, neither.
1. The buildings or parts of buildings and surrounding land
which, whoever may be the owner thereof, are used for the
purposes of the Bank shall be inviolable. No agent of the
Swiss public authorities may enter therein without the express
consent of the Bank. Only the President,2 the General
Manager of the Bank, or their duly authorised representative
shall be competent to waive such inviolability.
2. The archives of the Bank and, in general, all documents
and any data media belonging to the Bank or in its
possession, shall be inviolable at all times and in all places.
3. The Bank shall exercise supervision of and police power
over its premises.
Immunity from jurisdiction and execution
1. The Bank shall enjoy immunity from jurisdiction, save:
(a) to the extent that such immunity is formally waived in
individual cases by the President,2 the General Manager
of the Bank, or their duly authorised representatives;
(b) in civil or commercial suits, arising from banking or
financial transactions, initiated by contractual
counterparties of the Bank, except in those cases in
which provision for arbitration has been or shall have
(c) in the case of any civil action against the Bank for
damage caused by any vehicle belonging to or operated
on behalf of the Bank.
Status of the members of the Board of Directors and of
the representatives of the Bank’s member central banks
The members of the Board of Directors of the Bank, together
with the representatives of those central banks which are
members of the Bank, shall enjoy while carrying out their
duties in Switzerland and throughout their journey to or from
the place where a meeting is held, the following privileges and
(a) immunity from arrest or imprisonment and immunity
from seizure of their personal baggage, save in flagrant
cases of criminal offence;
(b) inviolability of all papers and documents;
(c) immunity from jurisdiction, even after their mission has
been accomplished, for acts carried out in the discharge
of their duties, including words spoken and writings;