Silver Update: Monopoly Money

October 14, 2012 By 2 Comments

BrotherJohnF discusses the intrinsic value of fiat currency in his latest Silver Update:
Monopoly Money


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Comments

  1. Avatar of PatFields PatFields says:
    October 15, 2012 at 2:58 AM

     
    BrotherJohnF’s consternation over the question of how tax cuts are to be ‘paid for’, pales in my chafing over knee-jerk railing to ‘pay down debt’. The two are equally ludicrous notions.

    In this 100% banknote monetary paradigm, it’s systemically impossible to ‘pay down debt’ because complex compounding of interest on the ‘float’ of currency (paper and digital combined) can ONLY be raised by borrowing NEW currency into existence, commensurate with interest. So, if all borrowing stops, with principal and interest being paid from the then static amount of currency, circulation quickly deflates beyond self-sustainability.

    Sure, exports can draw in foreign currency that will also offset interest load from ‘external’ sources, but the whole planet is under the same systemic constraint. At the point of global ‘debt saturation’ NO ONE wants to ‘spend’ their currencies outside of their local economies because the same debt-payment-driven currency deflation is hitting them as well.
      
    The bottom line is that NO ONE … whether they project a ‘liberal’ or ‘conservative’ persona, ought to concoct ANY defense of the banknote monetary scheme. It’s thoroughly self-destructive and to adopt it is economic suicide.
     

  2. Avatar of Sumkid Sumkid says:
    October 16, 2012 at 11:28 PM

    I wonder how these new 100$ bills got stolen from the Federal Reserves, weird. The US dollar and the monopoly cash are not money because they are both made out of nothing and the US dollar does not preserve value. The term “Money” shouldn’t never be used on these types of videos.

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