spurgistan wrote:Mr_Adams wrote:shieldgenerator7 wrote:But isn't a certain amount of inflation necesary for a healthy economy?
No, see, that is the fault of the Keyensians that have been in control for so long. they tell you that it is necessary that they debase your currency, when all they are doing is taxing the entire economy. In 1932, we went from 20$/oz to 35$/oz, a 75% inflation of the dollar, under everybody's favorite president, FDR. Over night, the bastard devalued your savings by almost half. The gold standard was then changed whenever the government need more money than it had. Then Nixon completely ended the gold standard, but that didn't really matter, because the gold standard was completely arbitrary, and subject to change anyways. We went through the industrial revolution with only natural inflation (a simple market force) which, in many years was NEGATIVE (dollars become worth more).
Now, the story of Keyens is simple, really. The government wants to control the economy. They think they are smarter than the economy, and the average people therein. This guy, Keyens, goes and writes a paper on this idea of government interference being good. Almost the entire economic and scholarly community objected, and people like Ludwig Von Mises tore his theory to shreads, but that didn't matter, because the government heard what it wanted to hear and ignored the rest.
So, Mr. Adams, if you will, kindly draw out the differences between Keynesian economics and communism. Also, how did this become another gold standard thread? Do the poor have gold?
I think thegreekdog would like to know the difference between the Federal Reserve and the Treasury. The Federal Reserve, which is operationally independent of the executive branch and Barack Obama's evil minions therein, has been dominated by inflation hawks ever since Paul "Evil" Volcker had the gig under Carter.
Keynsianism is indirect communism. the government uses it's powers to coax people with stuff into doing exactly what the government wants, instead of just taking the stuff and doing what it wants. For example, subsidies. How are they funded? corporate taxes. So, they tax all companies, and use it to make preferred companies' products cheaper. Often, this is based on who is the favorite of the powerful politician, then hidden under some excuse. All this money is funneled through the bureaucracy, so a significant portion is lost. If they would stop the corporate tax, instead, the cost of production for all the products would be less, and the consumer could decide, instead of the government, what products survive on the free market.
It became a gold standard thread because, at one point, the poor DID own gold. you could take your dollar bill (well, 20$) to the treasury and exchange it for gold (or silver) at will. Now, what little money a poor family does manage to save deteriorates in the bank, because the government can arbitrarily decrease that money's value as they print more money, causing inflation.
The difference between the Fed and the reserve: The Fed is an independent corporation with direct control over the money supply. the treasury puts money into the Fed, and then the Fed loans it to banks. In more recent years, the government has printed more than it can justify, so it prints money and slides it across the table to the Fed, and then the Fed lends it back to the treasury with interest. Ya, when we print more money than we can justify, the Fed makes unjustifiable money for helping the Government hide what they are doing.
