Capitalism is NOT Democratic: Democracy is NOT Capitalist

[Toddsterpatriot]

Who says deflation is good?

 

[georgephillip]

hahah yeah we saw that "democractic socialism" play out in Hugo's Venezula..

How did literacy and infant mortality rates in Venezuela change after Chavez came to power?

 

[georgephillip]

They aren't polarizing, dumbass. The USA becomes more socialist with every Democrat election.

The Democratic Party in America is the party of Wall Street, Rube.
Who else would get away with signing NAFTA, gutting Glass-Steagall, blocking regulation of bank derivative gambles, and inaugurating a wave of deregulation and outright criminalization of banking?
OPINION: Time to bury the Clinton economic legacy

 

[Toddsterpatriot]

How did literacy and infant mortality rates in Venezuela change after Chavez came to power?

Before or after Chavez stole billions?

 

[georgephillip]

How does the government becoming more socialist constitute polarizing the country?

How did the government become more socialist by repealing Glass-Steagall?

 

[georgephillip]

It's been explained to you, in excruciating detail, by scores of people by now, how investment and profit perform vital functions in a healthy economy.

Link to one of those alleged explanations then tell me if you comprehend the distinction between industrial vs finance capitalism.

 

[dblack]

Link to one of those alleged explanations then tell me if you comprehend the distinction between industrial vs finance capitalism.

No. If you don't recall, or don't have the wherewithal to search for them yourself, I give no shits.

 

[georgephillip]

Nothing is more authoritarian than the state controlling trade.

Of course there is.

It is bad enough when private tyrants like the Koch brothers indirectly control politics, but it isn't hard to imagine how much worse it would get if they assumed direct control without any pesky elections to steal or corrupt.

 

[bripat9643]

The bank has to give an OZ of gold if someone exchanges $1800 for it. There isn't any higgling about the rate.

That is awesome!!! So when inflation happens, and gold rises to $1900, every one of those notes is redeemed.

It can't drop because the bank is legally bound to exchange 1800 notes for an house of gold.

Gold can't drop to $1700? Why not?

Inflation doesn't happen. What does happen is that if the bank prints too many bank notes, then its note holders will draw down bank's gold reserves. If it prints too many notes, then there will be a run on the bank until it can't exchange gold for bank notes any longer. That's what happened in the panic of 1929.

Gold can't drop to $1700 because the bank has no incentive to let it drop to that point. That means the bank is paying more gold for each of its bank notes. For obvious reasons, it doesn't want to do that.

"We had free banking in this country until 1914. Banks could all issue their own notes backed by gold.

Unless your bank failed, and you got zero for your notes.
They were usually backed by bond holdings, not gold holdings."

You're displaying your ignorance again. They were backed by gold. That's what a gold standard is.

 

[Toddsterpatriot]

Inflation doesn't happen. What does happen is that if the bank prints too many bank notes, then its note holders will draw down bank's gold reserves. If it prints too many notes, then there will be a run on the bank until it can't exchange gold for bank notes any longer. That's what happened in the panic of 1929.

Gold can't drop to $1700 because the bank has no incentive to let it drop to that point. That means the bank is paying more gold for each of its bank notes. For obvious reasons, it doesn't want to do that.

"We had free banking in this country until 1914. Banks could all issue their own notes backed by gold.

Unless your bank failed, and you got zero for your notes.
They were usually backed by bond holdings, not gold holdings."

You're displaying your ignorance again. They were backed by gold. That's what a gold standard is.

Inflation doesn't happen.

Gold goes up and down, even if banks issue their own gold backed notes.

What does happen is that if the bank prints too many bank notes, then its note holders will draw down bank's gold reserves.

Banks never had 100% gold backing for their notes. Not ever.

Gold can't drop to $1700 because the bank has no incentive to let it drop to that point.

If you think Bank of America and JPMorgan and whatever other banks you feel will issue their own notes can stop gold from dropping to $1700 or lower, you don't understand the size of the gold market. A bank's incentive has zero to do with it.

You're displaying your ignorance again. They were backed by gold. That's what a gold standard is.

A gold standard is the government setting the value of a currency, not a private bank.
If you have any proof they were backed by gold, post it.

 

[bripat9643]

Inflation doesn't happen.

Gold goes up and down, even if banks issue their own gold backed notes.

What does happen is that if the bank prints too many bank notes, then its note holders will draw down bank's gold reserves.

Banks never had 100% gold backing for their notes. Not ever.

Gold can't drop to $1700 because the bank has no incentive to let it drop to that point.

If you think Bank of America and JPMorgan and whatever other banks you feel will issue their own notes can stop gold from dropping to $1700 or lower, you don't understand the size of the gold market. A bank's incentive has zero to do with it.

You're displaying your ignorance again. They were backed by gold. That's what a gold standard is.

A gold standard is the government setting the value of a currency, not a private bank.
If you have any proof they were backed by gold, post it.

You're wasting your time because what I described is exactly how our monetary system worked prior to the creation of the Federal Reserve. It's a fact of history. And, yes, we did have bank notes back by gold

 

[Toddsterpatriot]

You're wasting your time because what I described is exactly how our monetary system worked prior to the creation of the Federal Reserve. It's a fact of history. And, yes, we did have bank notes back by gold

If you have proof that any bank issued notes 100% backed by gold.......post it here.

 

[bripat9643]

If you have proof that any bank issued notes 100% backed by gold.......post it here.

I just did, dumbass.

 

[Toddsterpatriot]

I just did, dumbass.

A picture of one note isn't proof that the banks notes were 100% gold backed.

 

[bripat9643]

A picture of one note isn't proof that the banks notes were 100% gold backed.

ROFL! You're immune to facts and logic.

Here, read this:

https://web.mit.edu/merolish/Public/books/libertarian/tmc.pdf

 

[georgephillip]

Can you answer the question, rather than seeking diversion? Why do you ignore the function of investment and profit in a free market?

I can imagine investment designed to further productive enterprises instead of asset price inflation, why can't you?

Sovereignty in the Ancient Near East | Michael Hudson

"Saint-Simon founded a school of reformers in France that realized that in order to industrialise the nation, to catch up with England and overtake it, it had to move banking beyond its medieval stage.

"Instead of making lending to businesses in exchange for interest payments – which can force them into bankruptcy when sales turn down, bank loans should really be made on the basis of profit sharing.

"This is how commercial loans were made back in Babylonian times. Saint-Simon’s idea was to make banks more like mutual funds.

"Their fortunes would rise or fall with those of their business clients."

 

[Toddsterpatriot]

ROFL! You're immune to facts and logic.

Here, read this:

https://web.mit.edu/merolish/Public/books/libertarian/tmc.pdf

So post the facts that back your claim.

 

[dblack]

Can you answer the question, rather than seeking diversion?

I can imagine investment designed to further productive enterprises instead of asset price inflation, why can't you?

I'll take that as a "no".

 

[bripat9643]

So post the facts that back your claim.

Been there. Done that.

 

[Toddsterpatriot]

Been there. Done that.

That's funny.
It's like you're using liberal math.