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Originally posted by Laokin
Originally posted by robwerden
Here is the real truth.
The economy is based on spending. The more people spend the better the economy.
Why are people not spending?
A: Because the devaluation of the currency through inflation drives prices up on things people need to survive so they are less likely to spend money.
How do you fix the economy?
A: You stop inflation by removing the cause of the devaluation of the currency. In the case of the USA the culprit is the federal reserve. So step 1 is to end the FED. Second you base the currency on commodity metals like gold and silver to prevent the treasury from diluting the money supply.
When a country has a stable currency, then prices are more stable and spending resumes because savers know the money they have in the bank will buy the same goods and services in 20 years as it does today.
The key is stability in the money supply.
This is the way the Constitution demanded we manage our currency and it was socialists and greedy banks who convinced the American public keynesian economics was the solution to the market corrections we were going through in the 20th century. What these scum bags never told us was after 100 years the entire system would fall like a house of cards, and the exodus from the gold standard in 1971 sped up the downfall even faster.
Don't spew your socialist communist economic alice in wonder land theories at me, I will destroy you with my article 1 section 8 laser cannon.
buh by
::Sigh::
The economy is based on spending. The more people spend the better the economy.
Right and wrong. Right in the sense that spending money strengthens an economy because it circulates wealth. Wrong, because in practice.... the more money you spend... the more is taken OUT of circulation.
2% of Americans have over 40% of the money. How did this happen? 98% of American's spend their money but it ultimately ends up stockpiled in the accounts of these 2%.
Spending more money faster will reach the opposite goal of balancing the economy. It exaggerates the problem, since the problem is that 98% of people are fighting over what is factually too little for them to get by on.
The estimated population of America is 300 million. The estimated amount of USD$ in circulation is $575 billion.
2% of 300 million people is 6 million people. 40% of that $575 billion is $230 billion.
6 million people get to share $230 billion dollars. 294 million people get to share $345 billion. Nearly every dollar spent on consumer products, out of that $345B, goes directly to that 2% minority. Hence, growing their $230B, and reducing the share of the 98% majority, the $345B.
So, as we consumers spend, spend, spend... our 345$ billion in curculation dwindles, whilst the $230 billion of the 2% grows.
The problem with the economy is simply put... too much consolidation of money into to small a fraction of the population of the people.
Essentially, the Middle class is broke, and the upper class has almost all of the money. The solution I ASSURE YOU, is not to give the upper class the rest of the money. The only thing this helps is tanking the economy. Not spending your money however, will also tank the economy. The ONLY solution is to reduce the money that the upper class has and return it to the middle class. The only way to do this is to TAX THE F^&@ out of the rich. Period.
A: You stop inflation by removing the cause of the devaluation of the currency. In the case of the USA the culprit is the federal reserve. So step 1 is to end the FED. Second you base the currency on commodity metals like gold and silver to prevent the treasury from diluting the money supply.
Wrong. Inflation is a symptom that is caused by increasing the amount of money in circulation because of the problem I demonstrated above. What happens when the Upper class has all the money? Simply put, you print more money. Printing more money, then devalues the currency in question. This is NOT about getting rich. This is NOT about stealing money. This is not about Greed. This is about bankrupting nations PURPOSEFULLY.
The more money you print, the less value it has, so if you had all of the money, essentially you maintain the same wealth. (I.E. The Super rich stay super rich... even in an inflated economy.) The money doesn't need to be backed by commodity metals. You do NOT need a currency backed by gold. The dollar hasn't been, but it not being backed by commodity is NOT the reason for the inflation. The inflation IS the reason we aren't back by commodity anymore. So, in that respect.. the opposite is actually true.
In theory it would prevent inflation... but what happens when your money gets consolidated and you don't want to give it back? You need inflation. So you drop your commodity backing. Which is exactly what the U.S. did. The "Gold" standard was only ever used as a metric to weigh if an economy was in proportion... It made sure you had the optimum amount of currency in circulation.
This is it's only function. We do not need a commodity backed dollar, we just need to understand that there is a certain amount of money allowed to be in circulation for any give population. If you exceed money in circulation...the value is then reduced. All that is required here.. is a law that states what the limits must be. (You must consider, we have already established a value for the dollar, independent of commodity.)
Remember though, we wouldn't have this problem of inflation, had the money NOT have been essentially consolidated to the vast minority. What we have now, is, a corporate monopoly. There are way to few companies making way to much money. There is not enough competition and as such... the money ends up sitting in the accounts of these mega corporations. The reason why "Monopoly" is against the law is because it removes money from circulation... which then collapses economies. The problem is, we allow Monopolies to exist, because they bought policy to allow themselves to maintain their positions.
The only way to fix this, is to break up the monopolies, super tax the extreme wealthy.... (read: create a new catagory that is in proportion to the amount that is yearly earned for that 2%.) Give control back to the states, shrink the government and return to mom and pop shops that are privately owned. This is capitalism. What we have now... is essentially corporatocracy.
You would also need to return the ability to print and control the money in circulation back to the government. Essentially you NEED the fed. You can't have an economy without an equal organization. However, the FED is privately owned... and is above the law. The FED needs to be government run... by NON-corrupt politics. This goes hand in hand with the idea of smaller government.
I rest my case.edit on 28-6-2011 by Laokin because: (no reason given)
Im glad you are resting your case. Now go play a video game because your intellect is equal to that of a child. You know nothing of economics and you are embarrassing your self in a public forum spewing nonsense about social justice.
I never rest my case, I keep calling out the insanity of people like your self for making the world think government has the solution when in reality it is the cause. Please tell me you will never run for public office, because the last thing this world needs is another socialist making uninformed idiotic policy.
I keep calling out the insanity of people like your self for making the world think government has the solution when in reality it is the cause
your intellect is equal to that of a child.
So to get the money in 100,000 peoples hands, how do you suggest that happens? Let me guess, you tax the wealthy and hand out the money to the poor. Boy that sounds allot like socialism to me.
How about you allow the free market to work with out regulations that hamper them to the point where they send their companies overseas. Maybe then corporations will set up manufacturing in the US and actually provide employment for those 100,000 people. Then the money would be in their hands through earning it instead of taxing (stealing) from all off us so a social safety net can entice the lower and middle class to not work and leech off the tax payers who do work.
Originally posted by robwerden
reply to post by Laokin
Your say some things that are in line with small goverment which give the illusion you are actually for it.
Then the illusion is destroyed when you say things like we do not need commodity back currency and make references to the classes of wealth and how they are unfair.
Rethink those issues and maybe there will be hope for you.
I get infuriated by talk of inequality. That is not what this country is founded on. If some people managed to become super rich I applaud them and hope to be like them some day. I don't whine and call foul because they have more than me and can afford to get a team of accountants to reduce their tax burden.
If you could pay no taxes you would and don't even say to the contrary. This country does not need a personal income tax and just because millionaires can find the loop holes that you some how have not been able to exploit does not give you the right to judge them and demand they pay their fair share.
Your statements are not only socialist, they are anti American and just because you and I agree on some aspect does not mean you are forgiven for demanding the rich pay more taxes.
Why don't you stop listening to John Stewart and MSNBC and start reading Austrian Economics and look into people like ludwig von mises and Ron Paul.
Open your eyes to the lunacy you are subscribing to.
Case still open
Originally posted by Bicent76
reply to post by Laokin
radical.. I am glad I was taught by My Grandfather, who survived the depression on how to deal with this economy..
Another thread where someone is blaming....
I am really beginning to believe I know something a large portion of the population do not, or have forgotten...
yes, yes thou continue to talk about it, and watch the economy while I am out their giving you something to talk about...
Originally posted by CranialSponge
Actually the video is very straight forward:
The rich are getting richer (via lesser taxes and more tax breaks) and the poor are getting poorer (via more taxes to compensate for the lesser taxes of the richer, and via reduction of social services due to those reduced revenues (taxes) paid to city/state/federal governments... the middle and poor classes cannot makeup for the reduction of taxes paid by the rich in previous decades.
Keep in mind... the "rich" does not mean just persons, it also includes corporations.
We are slowly heading back to the bygone days when there was no such thing as a middle class... just the very rich and the very poor - no in between.
Originally posted by Bicent76
reply to post by Laokin
sure I will elaborate, making something simple complicated creates confusion. The Economy is simple, and does not need to be made complicated. Are their losers and winners, yep always have been, always will be.
Originally posted by eldard
Scandinavia = low population, very rich resources = same with Canada
ALL socialist countries DEPEND on trading with other nations.
Originally posted by Mdv2
because pretty much the entire world does these days, regardless of its economic system.
Besides, the fact that these countries have low populations doesn't mean a similar system wouldn't work for the US.
Originally posted by hdutton
reply to post by timidgal
Just think of it; all the money the rich have stacked up in the bank will suddenly be about as useful as toilet paper. Most of them will not have the basic skills needed to survive and all those people who can will be the ones they screwed as they were getting all that money.
but the strong will survive and maybe we will do better after the rich trash is swept away and we can start over.
Originally posted by robwerden
That video explains nothing!
It is a socialist agenda for equality and spreading the wealth.