“But where did that money come from? You didn’t have it
> before and neither did the bank, the merchants or the rest. The answer is
> that
> within the group of you, you all have created $500 and added it to the money
> supply.”

Yes, where did the money come from? You’re correct in later saying that the
gov’t didn’t create it. Private banks did. Under the name of the Federal
Reserve. They are loaning it to us at interest. This is a big reason we
parted with England (the Bank of England) when we fought the Revolutionary war.
Then in 1913, after a lot of struggle since that time, the Bank of England wins
back control of our central banking system through the illegitamite Federal
Reserve Act, written by bankers, not legislators. So we stop having a truly
national central bank – in the Constitution it says that only Congress has the
authority to coin and regulate money. This was a big deal since the founding
of this country. But go ahead and continue to defend the private bankers.
Just because gold mining is bad for the environment? or is there another
reason?

People are going back to work? Things are going to be OK? Read the headlines?
YOU are the wingnut!

By the way the unemployment figures in the US are fudged in a major way. They
leave out the people who were already unemployed the month before, things like
that.

Quoting Daniel Heyman :

>
>
>
> Hey, that’s a really video cool! I had an economics professor who
> gave the class the lyrics to that Peter Tosh song to study in a class on
> economic crises.
>
>
>
> TWENTY FOUR YEARS AGO, IN ***1985***
>
>
>
> The dollar still hasn’t “died.”
>
>
>
> And as a matter of fact, that professor was a Marxist. And a
> real one, not a “Nancy Pelosi/George Soros/Barack Obama is a Socialist who
> wants to take my guns” teabag boogyman Marxist, either.
>
>
>
> Mr. Dyke wrote “I said mark my word, there will come a day.”
> Well I did mark his words. That’s the point. A year later and still no
> hyper-inflation, still no martial law. I really don’t want to get into this,
> but since I’m desperate for a reason to be smug, I guess I’ll have to run a
> clinic in basic economics.
>
>
>
> (I’m not even going to bother refuting a bunch of broken
> links about job openings as National Guard internment camp guards. Must be
> the
> people who are going to operate the Obama Care Death Panels. This shit gets
> too
> incoherent to even argue over. By the way, a little more openness at the fed
> is
> probably not a bad idea, but also not a big deal. Nothing compared the
> reality
> that the Keynesians at the central banks just rescued our collective asses,
> and
> may even make money for the taxpayers doing it.
> http://www.nytimes.com/2009/09/11/business/11bailout.html?hp)
>
>
>
> The question before us (not that I expect Mr. Dyke to
> listen) is why do we not have hyper-inflation? Another way to put this is to
> ask why did even a monetarist as dedicated as Milton Friedman totally oppose
> the gold standard?
>
>
>
> Let’s start with Chart One – the CPI, which you should find
> attached to your e-mail. This is the inflation rate. Since average prices are
> in real danger of falling off the bottom of the chart, I think we can agree
> that we are not in hyper-inflation.
>
>
>
> But wait, ask the wingnuts, how can that be? The central
> banks and others (notably in the U.S. the fed and the treasury department)
> have
> been adding to the money supply at a furious rate. See Chart Two – The Money
> Supply. It’s been exploding, especially starting about a year ago. The
> theories
> we wingnuts all follow says when the money supply goes up, so must prices.
>
>
>
> But the rule of thumb is that money added to the money
> supply by a central bank starts to have it full effect about six months after
> being added. Yet prices have not exploded. And they won’t.
>
>
>
> See Chart Three – Bank Credit. If you look closely you will
> see that bank credit dropped off sharply last fall, right at about the same
> time the money supply was really starting to increase. This is not an
> accident.
> The increase in the money supply was made to (and had the effect of)
> REPLACING
> the money that was in essence being taken OUT of the system by the banks.
>
>
>
> To see how this works we need to take a step back. The first
> thing we have to understand is that banks, merchants, credit card companies
> and
> consumers ADD MONEY TO THE MONEY SUPPLY EVERY DAY. It’s a normal result of
> how
> credit operates. This about it this way – say you have no money, but you get
> a
> credit card in the mail. You use that plastic to go out and buy $500 dollars
> worth of stuff. The merchants get their $500 and pay their workers and
> suppliers etc. So that $500 worth of purchases represent economic activity.
>
>
>
> But where did that money come from? You didn’t have it
> before and neither did the bank, the merchants or the rest. The answer is
> that
> within the group of you, you all have created $500 and added it to the money
> supply.
>
>
>
> Now, this makes people nervous. It should. Ideally this new
> money is absorbed into the growing economy and put to use. This is the second
> thing we need to understand – capitalist economies HAVE to grow, or they get
> sick. But they normally increase by several percent per year. Which means we
> can have, in fact SHOULD have an increasing money supply to match that
> growth.
>
>
>
> But just because someone mails you a credit card does not
> mean you or the economy can afford to run up a bunch of debt. But the fed and
> the treasury only deserve a small part of the blame for letting that
> situation
> get out of control.
>
>
>
> What they have done, and done it well in this case, is deal
> with the crisis that comes when everyone in the system shits in their pants
> and
> realizes they can’t maintain the pace of growth. The government is not the
> only
> one adding to the money supply, but it’s the only one that can decide it
> wants
> to step in when everyone else is pulling back. That’s one essential lesson of
> Keynesianism.
>
>
>
> Which brings us to Milton Friedman and the gold standard.
> The production of gold IS terrible for the environment and for the people who
> have to mine it or live around the mines. But the essential point about it
> economically is that it is inflexible. You can’t increase the amount of it
> when
> the economy needs a larger money supply. Which is why Friedman was totally
> opposed to anything like a gold standard. Friedman said the money supply
> should
> be increased at a slow steady rate – three or four percent per year – in
> harmony with the level of economic growth. But it was to be an INTENTIONAL
> increase,
> not just a random thing that depends of the mining company in Alberta or
> South
> Africa hitting a rich vein.
>
>
>
> How can I say that the fed and the treasury have done a good
> job in handing this crisis? I’ll let you read the headlines for yourself, but
> one key measure (the one the president has pointed to) is that the
> unemployment
> rate seems to be topping out. People are going back to work. There are other
> metrics to watch: as we’ve seen inflation is not going hyper; the dollar is
> down and gold is up, but neither one by much; the banks are paying the TARP
> back; and federal bonds are still selling well at a good price.
>
>
>
> Then there is the stock exchange – chart 4. I’m not a big
> fan of measuring everything by stock prices, but in this case there is a
> clear
> corollary pattern. Stock exchanges tend to be a leading indicator, several
> months ahead of the broader economy. And last summer the bottom fell out of
> the
> Dow. But it’s been climbing since the beginning of the year.
>
>
>
> Class dismissed.
>
>
>
>
> Dan Heyman

inflation or deflation?

Should I cash out of gold while its up or … buy ammo?

Indolent as yet
But required
By those desired
NOT TO FALL PREY
to the insolent sway
of the proletariat
letter.

The CAP
Is elite
in discretion
Appearing without foreknowledge
as harbinger
of INTENT.

Well spent
The time labyrinthlike.
Recline
upon the voluptuous
Curves
of OBSTINACY.

TO KNOW
IS TO
ENDEAR
WITH FAMILIAR
CHEER

WE
GET
IT
NOW

And embrace the face
of the NEW
and say POOH
to the old letterstrikes.

Whose way
Perhaps was
Lost in another
Day
Begone