Re: Money and Inflation
From: Johnny 5 (johnny5_at_yahoo.com)
Date: 07/13/04
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Date: Tue, 13 Jul 2004 10:27:05 GMT
The Trucker <mikcob@verizon.net> wrote in news:ccvhje01rj1
@news3.newsguy.com:
> are a liability of our government and taxation is the only method
> be which that liability can be discharged.
Brittney spears is gonna flee the country before she works 80 hour weeks
to pay taxes - the average american works 6 months to pay for taxes
right? the other 6 months are his - when we are working 9 or 12 months,
you think brittney is gonna stay here? She is gonna FLEE that
oppression.
>> Currency issued by the
>> government has replaced gold as the monetary base. Base money derives
>> its value from the fact that it is required in the payment of taxes.
>
> There was a time when I believed this. I still do, but tribute also
The money is only as good as the governments power to enforce its use,
the tax is only as good as the governments power to enforce its payment,
I see too many people just stop working cause they dont want to pay, or
trying to flee the country because they dont want to pay, or creating tax
shelters because they dont want to pay, so who wants to own an IBOND if
that is reflected on the gubbments ability to ENFORCE taxes - which it
looks like it is losing. AS the gubbment loses control, its money and
taxes go down with it.
> plays a major part. The value is forced. If the oil sheiks understand
> that they will be sheik no more unless they take dollars for oil, then
> they will be taking dollars for oil. Our Republican government will
> manufacture whatever Devils it might need to replace those who do not
> participate in this scheme to preserve the international value of
> dollars.
Right, the gubbment has to enforce the moneys use, and enforce the tax
repayment on the people under it.
> Most people pay their taxes with a check. Any discussion of reserve
> notes and such is just a distraction. I've never understood why you
> insist on this obfuscatory stuff about paper notes.
Visa did 3 trillion last year, I am sure the other credit companies,
mastercard, discovery, AE - also did a lot of business, then checks,
money orders, paper currency.
>> reduce total economic output. That would result in increased
>> unemployment and possibly price deflation.
Inflation is the silent tax, it robs you, delfation must do the opposite,
and give to you.
> the proper tool. Simply stated: government must spend less or tax
> more.
The gubbment is losing its ability to enforce its taxes, recent attempts
by the IRS to sieze offshore accounts and expatriates assets shows this.
You can only tax people to a point, which right now is 6 months of thier
year, and you push it too much further, people will just sit down or run
away, no more work. But the debt grows - china sends us goods, we will
default on our debt and what can they do? We spend 400 billion a year on
military, they spend 10 billion, right now they can do NOTHING. Take our
worthless promises to pay. Go watch dumb and dumber - they lived it up
on Ms Swansons dollars, she had unenforceable IOU's from loyd and harry.
We the USA are living it up on cheap china goods, they are taking our
loyd and harry IOU's - what FUN!
> taxation that gives money its value. Screwing around with the
> "price of credit" is simply harmful to the economy.
Where do you think the price should be?
> This is somewhat true but overstated. If full employment causes
Why does FULL EMPLOYMENT have to be the goal? THis is the error with
modern thinking, I don't want a job that I hate, I want to sit around all
day in the library and read books, I vote for 0% employment, not 100%
employment as the goal of our nation. The more people happy and with
free time to read books, the less they are gonna be angry they are stuck
in a shitty job they hate.
> This is not necessarily the case. There is currently more than adequate
> money (T-Bills and such are a form of money), or liquidity in the
> monetary system of the USA. That people would use this money to
> address new enterprises or to expand current enterprises is merely
> a matter of stopping interest payments to people for putting their
> money in a government backed piggy bank.
So you want to take away my TIPS and force me to find the next MSFT with
my money? Thanks! HAHA
http://www.museumofhoaxes.com/photos/microsoft.html - look at the picture
here of MSFT in 1978 - you would not have invested - be honest.
>> (2) Money borrowed for consumer purchases implies the availability of
>> existing products whose prices have already been set by the sellers.
>> Such borrowing increases the money supply without affecting prices.
>> However where supply falls short of demand, prices on those consumer
>> goods will generally rise, at least temporarily. But the shortages
>> tend to occur in isolated cases and are usually short-lived. They
>> seldom have a lasting effect on the general price level.
>
> This is correct. There should be no "price of money" in these
> transactions. There is only a bookkeeping and enforcement fee.
Ok so shopping machine runs the credit card up to 30K buying at the mall,
she does not intend to repay, collectively tens of millions of shopping
machines do this? It won't cause money to fall or people to lose trust
in the system? China gets tired of sending us FREE shit and us
bankrupting on them, they stop.
>> (3) Money borrowed for speculative purposes mainly affects asset
>> prices, particularly stocks and real estate. If the borrowing cost is
>> set too low for an extended period, asset prices could become
>> inflated.
The housing bubble. Will it hit all homes? I have heard people say in
the hottest markets you will see an 80% reduction in prices, and others
say a 60% reduction in ALL homes - and other still say maybe just a few
percent reduction. I have some friends with rental property in palm
beach, its section 8 housing though, only worth about 150K being rented
to a cuban, I told them don't sell, even if the house bubble bursts - it
is those 500K and higher homes that will crush, not the 150K section 8
welfare rental housing units.
> This is absolutely incorrect as a matter of objective reality and
> as a matter of your forgoing statement concerning taxation as that
> which gives money its value. And "the private sector" turns out to
> be the banks. The banks create the new money that the government
> needs and then the government does not reclaim the money via taxation.
> The money is "sterilized" by the sale of government securities thus
> holding prices at bay while dramatically increasing wealth disparity
> in this country. Essentially: Those who got the tax breaks are the
> purchasers of the T-Bills.
Right, that makes sense. Where do you invest - savethechildren.org? Or
do you work every day for 5.50 an hour?
Instead of taxing these beneficiaries of
> government services (the owners of the means of production), our
> Republican government creates a debt owed to these beneficiaries
> which must be paid by the productive citizens in the USA (those
> who do not own the means of production).
But if the voters of the USA get tired of this arrangement, they can vote
out whoever they want. In the 30's they came and took richies gold -
poor people didn't really have gold back then did they? The smartie and
crook richies found ways not to get gold confiscated but most got gold
and silver certificates didn't they?
>> prices. But less competitive sectors remain and contribute to a long
>> term upward bias in prices. As prices rise, the money supply growth
>> must necessarily keep pace.
What parts are less competitive? My trash service and water service have
no competition.
> price of oil. Labor and money holders will both lose to the oil
> sheiks and the proper conduct of monetary policy is to insure even
> handedness.
So do you invest in oil futures? Where do you invest?
-- Government policy in interest rates, and on finance generally, has been marked by vacillation, wishful thinking, electoral expediency of the most shameful type towards the end of last year, contortions and contradictions, all to accommodate the redneck economics of the National Country Party. (Harsard Aug.27 1981)
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