Australian Government to rescue Capitalism

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maveri's picture
maveri
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Posts: 159
Australian Government to rescue Capitalism

Australian Government to rescue Capitalism

http://www.news.com.au/business/story/0,27753,24986418-462,00.html

Could we expect anything less from our government?

This is the beginnings of a power grab in my opinion.

We already have the internet filter being forced upon every citizen on the pretense of protecting the children (read Adolf Hitlers quotation on this as an eye opener!)

Swings and Round-abouts really isn't it. Capitalism in it's pure form is just greed by another name and now that the wheels have fallen off and it's shown it's true nature, to keep it alive under a disgused form, we have governments going to manipulate the beast to give it credibility that it's being tamed.

Could we really expect anything less? Governments with no vision just returning to what they know rather than explore new concepts.

Old empires can take years to collapse and I suspect capitalism will be the same - no-one relinguishes power willingly and whilst I would love a society based upon sharing and cooperation my fear is that the average person hasn't even considered that there are other possibilites available - the money system is the same - the average person in the street has no idea how money is even created and that it's a flawed system so they just flock and endorce what they know and don't question or demand anything new. By the time people's awareness is raised to alevel to demand a new system, I suspect the old will be propped up in some form and people will slip back into their old ways again :-(

Until people can be shown a clear vision of an alternative system, people will just cling to the dead horse they have. It has to be more than people just saying the old system is dead - a new vision needs ot be imparted or people will not follow.

To quote a biblical proverb, governments / the financial sector are like the dog that just returns to it's own vomit.

Whilst the world is getting increasingly angry at Amercia for the mess (and quite rightly so in some ways - but if your stupid enough to follow someone then your to blame to some degree too) at least America has a glimour of long term hope - a president with morals and a sense of direction - unlike our own prime minister that just quotes others and copies others *sigh*.

So, now to keep capitalism afloat we will have our government sticking it's nose into private citizens affairs - who knows how far this will go?

The death of capitalism is like those old comedy western's where the shot cowboy takes ages to die - he keeps twitching and sitting up, twitching, sitting up, etc etc etc

jdownie's picture
jdownie
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Posts: 58
Re: Australian Government to rescue Capitalism

Prime Minister Krudd argues for more government intervention, but that we shouldn't have too much government intervention? The man is clueless.

Treasurer Swann says inflation low as the price of gold reaches record highs! In actual fact, the value of the dollar has reached record lows, inflation is the highest it has ever been! The man is clueless.

The Australian people voted for these clowns, they are clueless.

The Australian dollar will continue to fall against gold, the only true measure of the value of government paper i.e. the dollar. As goes the price of gold, so goes the price of everything else.

And maveri, you are wrong. Capitalism is not just another name for greed, why? because with 'pure' capitalism greed is balanced by fear, the fear of losing your money. It is only through government intervention in the form of fiat money, government bailouts (welfare), etc that greed can become dominant.

 

maveri's picture
maveri
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Posts: 159
Re: Australian Government to rescue Capitalism

I disagree. Fear of what? Corporations take and own what they want. They buy governments and silence the individual - look at corporate America how it has enslaved people the world over.

Perhaps to state that capitalism itself was the evil may not be technically correct but as a framework it's been a great framework for greed to work within as far as I'm concerned.

The fear that I see currently is that people are in fear of their jobs and look at the result - contraction. Fear never produces long lasting good for all - it requires greater and greater amounts of energy to maintain it's rule - thus at it's heart it is a resource wasteful system. Naomi Watts covers quite well what Friedman's policies ultimately required to keep them enforced in the third world.

Isn't the FED a private banking cartel operating under the guise of a government agency? Hardly the government acting as I see it but rather corporate greed at it's best in stealth.

John Maynard's statement on capitalism goes hand in hand with how it's been used:

Quote: "Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone".

On the technical issue of capitalism, I stand corrected on the pure essence of what it is. I have wrongly associated fiat based systems with capitalism itself, where-as an excellent post on this website has made a clear definition of what it is: i.e. http://www.peakprosperity.com/forum/time-get-out-way-what-capitalism/12461

However, whilst in the purest sense of the word capitalism may not be to blame, it certain has been used as a vehicle from which destruction has been launched time and time again.

jdownie's picture
jdownie
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Joined: Apr 7 2008
Posts: 58
Re: Australian Government to rescue Capitalism

The fear of losing your money!

It is only through the governments use of legal tender i.e. forcing you to accept government debt as money (payment for goods and services), that the government can bail out the banking system. A private bank cannot endlessly issue debt as money because it cannot force anyone to accept it, only the government can do this and it is.

The fly in the ointment is the gold price. It is no coincidence that the gold price has reached record highs in the last few days, with the government swapping freshly printed dollars for the worthless assets of the banks, the stimulus packages and so on.

Damnthematrix's picture
Damnthematrix
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Joined: Aug 10 2008
Posts: 3998
Re: Australian Government to rescue Capitalism

"The Australian dollar will continue to fall against gold, the only true
measure of the value of government paper i.e. the dollar. As goes the price of gold, so goes the price of everything else."

That's not even remotely accurate.... 

Gold is 'priced' in $US, and that exchange is fluctuating.

The Aussie $ has been going down against the $US, which itself is also going down against other currencies.  So the picture is very much murkier than you make it out to be.

As I've suggested e;sewhere, I don't believe there is anywhere near enough gold on the Planet to cover the worth of 'civilisation'

We're moving to a simpler system so we may simply live.  Don't get hung up on gold, buy some fertile land (outright preferably) and make sure you have your own independent water supply, and learn Permculture.

No amount of gold can replace assets like those.

Mike, a Banana Bender. 

jdownie's picture
jdownie
Status: Bronze Member (Offline)
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Posts: 58
Re: Australian Government to rescue Capitalism

You have been eating to many bananas Mike.

The value of the dollar was, is and always will be equivalent to a specific weight of gold, the troy ounce. Gold is also priced in Australian dollars, how else can you buy gold in Australia?

The AUD is losing value against the USD, that's why gold in AUD has risen nearly 44% in the last year, while in USD it has only risen 1.3%. The picture is that simple.

It is gold that is the true standard of measure of value, not the US dollar.

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Re: Australian Government to rescue Capitalism

"The value of the dollar was, is and always will be equivalent to a specific weight of gold, the troy ounce."

Where on Earth did you get that idea?  Why do you think so many people here talk of a gold based money system?

Nixon decoupled the dollar from gold in 1971 (MEM ?) and that was that....

Sure we can buy gold in $AU....  but it's quoted via the $US, always.

You can't eat too many bananas.... especially when you grow your own organically! 

Mike 

jdownie's picture
jdownie
Status: Bronze Member (Offline)
Joined: Apr 7 2008
Posts: 58
Re: Australian Government to rescue Capitalism

My last post should have read, 'a specific weight in gold, measured in troy ounces'.

But it is you who have no idea. Nixon did not decouple the dollar from gold at all, the US government defaulted on its gold obligations in 1971. The US dollar then promptly began to lose value against gold, as did the Australian dollar since the Australian government holds USD to back its AUD liability.

The USD may not be backed by gold any longer but it sure as hell is valued in gold, a lot less gold than it was pre 1971. I'll say it again so you understand, gold is the true standard of measure of value, not the US dollar.

Therefore, as goes the price of gold, so goes the price of everything else.

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Re: Australian Government to rescue Capitalism

Well, OK Nixon abandoned the Gold Standard, but surely that could be called decoupling?

My understanding of 'the value' of the dollar is that it utterly relies on confidence.  Nowhere on a dollar note does it say it's worth 'xyz ozs of gold'. Paper money is worthless.  It's only worth its face value if you believe it's worth that much, if you have confidence in it being that much.  I have zero confidence in the dollar, American or Australian or whatever other flavour you prefer....

Because gold is totally useless as a currency on a day to day trading system (just try buying a loaf of bread with a sliver of gold...) I own none, and neither do I own money.

Abandon the Matrix.

Mike 

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