The most important aspect that most economists and analysts fail to recognize

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investorzzo's picture
investorzzo
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The most important aspect that most economists and analysts fail to recognize

The biggest problem that most economists and analysts fail to comprehend when making forecasts and predictions on the US Dollar, Precious Metals, Financials or the whole Economy in general, is the ability to get to the Root of the Problem.  Most of them are using information and methodologies that are either outdated, superficial or completely worthless.  Those economists who are either Keynesians or Monetarists are living in a economic model that will have a life expectancy of less than a century.  Indeed, a blip in the history of mankind and increasingly worthless going forward into the 21st century.

http://www.financialsense.com/fsu/editorials/stangelo/2009/0820.html

Thomas Hedin's picture
Thomas Hedin
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Re: The most important aspect that most economists and ...

The most important thing they fail to realize is the money is created when loans are issued and debt incurred; money is extinguished when loans are repaid, and once time and interest kick in the debt grows but the money supply does not.

This very process of using credit for money always in time transfers all of the property of the people over to the banking system through a process of theft by deception.

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Re: The most important aspect that most economists and ...

What a different world it would be if savings was the only wealth loaned. IE Succesful investors, savers, business people pooled money for sound investment.

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Thomas Hedin
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Re: The most important aspect that most economists and ...

Where would the people get their savings in the first place?  How would that money be put into circulation?

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Davos
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Re: The most important aspect that most economists and ...
Thomas Hedin wrote:

Where would the people get their savings in the first place?  How would that money be put into circulation?

Same way they did it in the days when the goldsmiths issued notes for gold held. There is NO perfect system. In those days, as I'm certain you are aware, money was clipped, metals were diluted or changed from gold to silver to junk. And the goldsmiths eventually did what the we did in the late 1960s and early 1970s - they flooded the system with notes for gold they didn't have.

I don't want to get into a debate about money. I was mearly agreeing with what you wrote and pointing out that IF loans were based on existing wealth - and there is and always will be wealth and it concentrates - then that would prevent the creation of money that didn't exist. Money would then shift.

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Thomas Hedin
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Re: The most important aspect that most economists and ...

Doesn't that put us in the same spot we are in today?

The goldsmith put all money into circulation as promises to pay something he didn't own.  The goldsmith is who switched the money from an evidence of wealth to an evidence of indebtiness.

After the first receipt then all money became a promise to pay something he did not own, and that is exactly what we are doing today.  Today all money is loaned into circulation by somebody who doesn't have any money. 

 

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Thomas Hedin
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Re: The most important aspect that most economists and ...

There is NO perfect system.

Just because we don't have a perfect system doesn't mean one couldn't exsist.

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idoctor
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Re: The most important aspect that most economists and ...

What a different world it would be if savings was the only wealth loaned. IE Succesful investors, savers, business people pooled money for sound investment.

Davos it would be a different world IMHO. One of slow but real growth without all the BS & bubbles we have today one would hope. Which one is better depends on how one took advantage of the situation. We probably have more overall from this false economy.....at least at the moment...might end badly I suppose.

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Davos
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Re: The most important aspect that most economists and ...

IMHO the perfect system did exist. And, to reitterate: Only wealth is pooled and loaned.

The goldsmiths did it UNTIL they realized hey, no one audits our gold, then they flooded the towns with funny money. No different to how money is created today.

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Thomas Hedin
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Re: The most important aspect that most economists and ...

When did the perfect system exsist?

What made it the perfect system?

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Re: The most important aspect that most economists and ...

Hello Thomas:

I don't particularly care for this style of discussion. In fact I find it anoying. If you have a point to make - make it. If I want to be interogated I'll go back to shcool or rob banks.

If your not getting my point, I don't know how else to word it. Money created out of thin air based on the future ability of a person(s) to pay either taxes or service debt is, and always will be, an inflateable system which will decay in value.

Money does need to be loaned for capex etc.. MY POINT FOR THE LAST AND FINAL TIME: Money in the form of family wealth, savings, business profit (from surpluss) can and should be pooled and then loaned.

Take care

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