Why do people think countries need centrally planned money?

Taxes are a form of inflation control and creates a demand for money. But honestly we don't "need" taxes to fund the Govt. But then you'd really face the threat of massive inflation.

I do not advocate raising taxes at all. I think all our taxes should be lowered right now. And lowering are taxes doesn't necessarily mean the Govt will get less revenue, because revenue can be created through velocity.

I just think the Govt should employ the unemployed and rebuild America.

 

it can also be argued that inflation is a tax on savings! And I still say that if and when the economy rebounds then all this new money will create massive amounts of inflation as the velocity of money explodes...sure the fed at that time can raise interest rates but by how much? I doubt they can raise them enough to curb the inflation and also as interest rates rise then the inslovent banks like B of A will fail!

 

Inflation is a tax on idle money. Savings includes investing in the stock market, treasuries, and cds, etc that do produce actual returns.

I don't see it happening. I see a country that can use massive amounts of velocity and reach that next episode of explosive sustained economic growth. With 9% unemployment, ~20% underemployment/unemployment, and 73% productive capacity... this country can use a crap load of money/velocity and not experience any significant episodes of inflation.

Put our people to work!! Human capital is the greatest commodity on earth and we are just letting it sit idle.

 

I may not know exactly when the crisis is coming but I can assure you that unless the politicians get their financial house in order then very soon the bond vigilanties will start to panic and dump american debt....now the million dollar question is will it be 2012 or 2013 I dont know but I do know that the US is foolish to drag its feet as they are living on borrowed time!

 

many a nation in trouble through inflation have taught us that even with hyper-inflation you can still have very high unemployment. Why? Simple.....as production slows due to a stagnant economy there are fewer goods for sale so as money grows there are fewer goods to purchase thus increasing the likelyhood of that money bidding up prices!

 

The Fed would end up buying it if a serious bond vigilante attack took place. But it is still highly doubtful. The financial house is fine, we need more money than we will be good.

 

We have absolutely no threat of production slowing. People are just waiting for customers. Our problem is demand driven not supply driven. Your thought process is to make the demand side even poorer causing even less production. We need a massive stimulus putting our people to work rebuilding the nations infrastructure.

 

and this is when hyper inflation sets in as has happened in argentina and 1929 germany and I believe Poland too. Its when there is a wholesale dumping of debt and the central bank buys it all!

 

1) remember that most of that product is imported....this still increases inflation as it increases the trade deficit

2) there is no shortage of demand as people always have wants. Its being able to afford them thats the problem and maybe if the savings rate was higher in the US that problem could at least be lowered!

 

We have nothing in common with argentina or the weimar. We are fine. Your conspiracy theories will still exist in 20 years.

 

Demand in economical terms is goods that people buy which I'm referring to. Of course everyone wants things. The savings rate is 3 times more than it was just 3 years ago. Savings and lack of spending is the problem. Which is why the Govt needs to flood us with money.

There is no hyperinflation risk that you keep crying about. You guys said in 2000 we would have hyperinflation and you guys have been saying that ever since. It is all in your heads

 

your problem is you lack imagination....just because it hasn't happened yet dont mean it wont. There is a first time for everything ya know. And I am quite convinced this is the time

 

Lol! Alright. Since this has no actual evidence or substance to it, I'll just agree to disagree. As long as American's are producing goods people want, people will want USD.

 

LOL I have never said anything about hyper inflation in 2000 however the only other time hyper inflation was a danger was in 1979 but Volcker and Regan put a stop to that with very high interst rates. Now unless you can guarantee me that very soon Bernacke will jack up rates then I can assure you that the US is on course for hyper inflation the only question is when!

 

LOL central banks are not buying USD because they like them but because they feel they must in order to prevent their own currency from rising and in so doing are importing america's inflation!

 

If things get out of control Bernanke will stop it. He is the superman of monetary policy!

 

well he is definately the superman of inflation I will grant him that much

 

Yeah, that's why the US was locked into the stone ages until every competing currency was wiped out in the last 50 years.

It's amazing how some people ignore the whole of human history and imagine that all progress occurred in the last 95 years.

Is it your argument that government invented money? If it is, please present your evidence. Otherwise, your argument is about as foolish as foolish gets.

 

Fine?

This guy thinks America is fine?

Enough said.

 

Being wrong about the timing is not the same as being wrong about the risk. Yours is a fallacy (and a typical one of yours, at that.) History is on the side of those who expose the risk. No fiat currency has ever survived indefinitely.

 

Wholly crap!!!

The Superman of monetary policy.

This explains a lot about akphidelt2007.


Ben Bernanke is a complete macro-economic ignoramus.

Oh sure, Helicopter Ben knows his terminologies.

But he has not an absolute clue how to run the Fed (based on his prior actions).

He is a Keynesian extremist that knows NOTHING but how to 'print' money and expand the Fed's debt load by leaps and bounds - any total moron can spend money they do not have.

Imo, Ben Bernanke is doing more then any other human being alive to destroy America's financial future - though I highly doubt his intentions are bad...just his monetary intellect.


The solution to much debt is NEVER more debt.

 

Which is exactly what we need!

 

Yes, I'm going to believe DA60 knows more about monetary policy than Ben Bernanke. Good grief, why is it the most arrogant and stubborn individuals are always the most sure of their ignorant beliefs? You have absolutely zero clue what Ben Bernanke should or should not have done.

 

No currency system has ever survived indefinitely. So should we just not use money at all or should we try to learn from past mistakes?

 

My evidence is America has evolved to the most sophisticated monetary system in the history of the world. Why is it that everything else can evolve like science, math, technology, etc... but for some reason they figured out the perfect economic system trading around gold bars?