itfitzme
VIP Member
Because you are attempting to define things that are defined by law, economics science, and business accounting. That, and you embellish other peoples presentation. And you are refusing to accept the reality which has been determined by others smarter than you. I detect a certain lack of allowing feedback, acknowledging the determination of definitions by the experts in the field. I am pretty sure you are neither a lawyer or an economist. Rejecting what has already been defined is a mental issue, in part the Dunn-Kruger effect.
No where did anyone say that the government prevents all monopolies. I simply pointed out the fact that they are illegal by US Law. And, the legality, the enforcement, sanctioning, and the creation of monopolies by the US government aren't at odds with each other. Surely you realize that the government can and does allow for patent rights which create monopolies until the patent runs out. Then, if conditions are right, as for Alcoa, a natural monopoly may ensue. This gets tried in court under anti-trust law, establishing the monopoly to be at odds with the law and therefore illegal. That the government creates monopolies doesn't mean that they also determine monopolies to be illegal.
By your reasoning, seat belts in automobiles don't prevent injuries because injuries occur while people are wearing a seat belt.
Yes, monopolies are created by the free market. You seem to be starting with the premise that the free market can't create monopolies and then attempting to force some false logic to make it so. How you manage this is beyond me.
That monopolies are created in the free market is well established and a simple search for description of monopolies will yield this information. One has to intentionally ignore the information presented by economists, the US government, and business. That the Federal Reserve might be considered a monopoly doesn't negate that the free market creates monopolies naturally or that the Supreme Court has found companies in violation of anti-trust laws on multiple occasions.
The Federal Reserve doesn't create the US currency that is used in the private economy and market place. The Federal Reserve creates money in the reserve accounts of reserve banks. It is called "outside money". The money we use is created by private banks as business loans, consumer loans, etc. It is called "inside money". Inside and outside money don't mix. The money supply created by private banks, outside money, is larger than the money supply created by the Federal Reserve. The last measure of M2 is 10,947.7 Billions of Dollars. The last measure of the monetary base is 3,682.285 Billions of Dollars. Historically, M1, the money used for purchases of goods and services, has been 1.5 to 3 times the monetary base.
The specific ratio is shown here;
It is M1/Mb. M1, the inside money used in exchanges, the money in circulation, is always more than Mb. And as the Federal Reserve only creates outside money, Mb, at the very least we can say that the difference, (M1-Mb), is clearly not created by the Federal Reserve.
Still, it is certainly incorrect to say that the Federal Reserve creates US currency when they create far less than the functioning money supply. All the Federal Reserve does is make outside money available through the reserve banking system. The private banks then creates money based on demand. It is correct to say that the money supply is created by the private banking system because, in fact, it is. It would be incorrect to say that the Treasury Department creates money in the US economy because, while it does print and mint, that money only becomes inside money when a private bank decides to do so. It may be better said that money creation is done by the combined behavior of the Federal Reserve, the Treasury Department, and the private banking system. If we have to pick one to speak of as being the major source, it would be the private banking system. As M1 is inside money and Mb is outside money, the Federal Reserve doesn't actually create the money inside the economy.
The Federal Reserve's role is to stabilize the money supply.
This fact, that the Federal Reserve's role is to stabilize the money supply goes right back to the central point brought about this discussion. Lacking the government and Federal Reserve's role in stabilizing the money supply, the economy would go to shit repeatedly. And there in lies the point. Money has no purpose except in exchange. It is far more a public good than anything else.
There is one concept that is clearly missing from your considerations, the concept of "and". Governments AND the free market creates monopolies. Governments sanction AND suppress monopolies. Monopolies are illegal in the US by Federal law AND health insurance companies were exempt from anti trust laws.
Private banks AND the Federal Reserve create money. The government AND the free market create monopolies. Monopolies are illegal in Federal law AND some monopolies are not illegal.
Whatever you have come to believe is simply wrong. And you have created false logic based on false or a lack of information
Understanding Inside Money and Outside Money | PRAGMATIC CAPITALISM
The basis of your beleif system is not based on logic and reason. So everything else that comes from you is Bull Shit.
PMZ stated that Government prevents monopolies (which is bullshit, look at communism. i dont care if he wants to say "american government")
You tend to agree and said that monopolies are illegale
Federal Reserve=monopoly=created by the government=legal
Therefore it is false that Government prevents monopolies and they are illegal
Its simple logic. Explain how it is incorrect.
I will argue you seatbelt explanation.
No one has ever claimed that seat belts prevent injury in car accidents.
People do claim that Seat Belts reduce the risk of injury.
If either of you want to retract the statement that government prevents monopolies, we can move on to another point.
I hope someone else has the time to take you to school on the Federal Reserve, because that is the biggest load of crap I have ever heard. They are the ones who caused this mess.
By all means, do present evidence that my Federal Reserve information is incorrect.
I did. You didn't read it.
That is it, really, you just make things up yourself with no basis in reality.
I gave you both a micro economics text book and link to the pragmatic capitalist that describes the banking system.
You apparently don't know what bullshit is. Bullshit is unsupported and unsubstantiated statement, what you do.
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