This is the best video I have yet found that explains money, credit, debt, inflation and deflation, and a template for seeing where we have been, where we are now, and where we likely will be heading.
I encourage anyone with questions to read the transcript.
Transcript
Edited by Phat, : No reason given.
"A lie can travel half way around the world while the truth is putting on its shoes." ~Mark Twain " *** “…far from science having buried God, not only do the results of science point towards his existence, but the scientific enterprise itself is validated by his existence.”- Dr.John Lennox
“The whole war between the atheist and the theist comes down to this: the atheist believes a 'what' created the universe; the theist believes a 'who' created the universe.” - Criss Jami, Killo
“The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of a doubt, what is laid before him.” — Leo Tolstoy, The Kingdom of God is Within You (1894).
You really need to read that transcript from the excellent video on how money works. Your communities need to be able to turn their labor into capital. Transcript
"A lie can travel half way around the world while the truth is putting on its shoes." ~Mark Twain " *** “…far from science having buried God, not only do the results of science point towards his existence, but the scientific enterprise itself is validated by his existence.”- Dr.John Lennox
“The whole war between the atheist and the theist comes down to this: the atheist believes a 'what' created the universe; the theist believes a 'who' created the universe.” - Criss Jami, Killo
“The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of a doubt, what is laid before him.” — Leo Tolstoy, The Kingdom of God is Within You (1894).
Its pretty self explanatory and it doesnt take Rocket Science to see the logic.
Transcript writes:
Though the economy might seem complex, it works in a simple, mechanical way. It's made up of a few simple parts and a lot of simple transactions that are repeated over and over again a zillion times. These transactions are above all else driven by human nature, and they create 3 main forces that drive the economy.
Number 1: Productivity growth
Number 2: The Short term debt cycle
Number 3: The Long term debt cycle
You claim we can fragment into local economies, but this is neither practical or efficient.
"A lie can travel half way around the world while the truth is putting on its shoes." ~Mark Twain " *** “…far from science having buried God, not only do the results of science point towards his existence, but the scientific enterprise itself is validated by his existence.”- Dr.John Lennox
“The whole war between the atheist and the theist comes down to this: the atheist believes a 'what' created the universe; the theist believes a 'who' created the universe.” - Criss Jami, Killo
“The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of a doubt, what is laid before him.” — Leo Tolstoy, The Kingdom of God is Within You (1894).
What you quoted from the transcript seems to agree more with me than with you:
quote:Though the economy might seem complex, it works in a simple, mechanical way. It's made up of a few simple parts and a lot of simple transactions that are repeated over and over again a zillion times.
So explain yourself.
First off, there is nothing wrong with my agreeing with you if, in fact, you are saying something reasonable. I'm simply attempting to explain why the video is logical, rational, and reasonable.
You've heard the quote that No Man Is An Island. No economy is an Island, either, The planet is interconnected, for better or worse.
If you simply banded together as Saskatewanians, you may well have plenty of Machinery, transportation, and industrial equipment; Food, crop, and beverage processing; Wood, steel, and plastic products; and Chemical manufacturing. What you would not have is what the rest of us produce that you don't have. Fish, for example. (apart from lake-caught fish! And some people groups would be unfortunately stuck in non-resource rich communities. How will they survive apart from the rest of us?
transcript writes:
Let's start with the simplest part of the economy: Transactions. An economy is simply the sum of the transactions that make it up and a transaction is a very simple thing. You make transactions all the time. Every time you buy something you create a transaction. Each transaction consists of a buyer exchanging money or credit with a seller for goods, services or financial assets. Credit spends just like money, so adding together the money spent and the amount of credit spent, you can know the total spending. The total amount of spending drives the economy.
Keep in mind, too that governments trade with each other, and a government is made up of all the seemingly fragmented local economies under their jurisdiction.
"A lie can travel half way around the world while the truth is putting on its shoes." ~Mark Twain " *** “…far from science having buried God, not only do the results of science point towards his existence, but the scientific enterprise itself is validated by his existence.”- Dr.John Lennox
“The whole war between the atheist and the theist comes down to this: the atheist believes a 'what' created the universe; the theist believes a 'who' created the universe.” - Criss Jami, Killo
“The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of a doubt, what is laid before him.” — Leo Tolstoy, The Kingdom of God is Within You (1894).
An economy is simply the sum of the transactions that make it up and a transaction is a very simple thing. You make transactions all the time. Every time you buy something you create a transaction. Each transaction consists of a buyer exchanging money or credit with a seller for goods, services or financial assets. Credit spends just like money, so adding together the money spent and the amount of credit spent, you can know the total spending. The total amount of spending drives the economy. If you divide the amount spent by the quantity sold, you get the price. And that's it. That's a transaction. It is the building block of the economic machine.
Do you agree with the premise so far?
"A lie can travel half way around the world while the truth is putting on its shoes." ~Mark Twain " *** “…far from science having buried God, not only do the results of science point towards his existence, but the scientific enterprise itself is validated by his existence.”- Dr.John Lennox
“The whole war between the atheist and the theist comes down to this: the atheist believes a 'what' created the universe; the theist believes a 'who' created the universe.” - Criss Jami, Killo
“The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of a doubt, what is laid before him.” — Leo Tolstoy, The Kingdom of God is Within You (1894).
We've had financial collapses in the past and they didn't cause trade to come to a screeching halt.
Oh?
History writes:
The Great Depression of 1929 devastated the U.S. economy. A third of all banks failed.
Unemployment rose to 25%, and homelessness increased.2 Housing prices plummeted 67%, international trade collapsed by 65%, and deflation soared above 10%. It took 25 years for the stock market to recover.
65% may not qualify as a screeching halt, but it supports my point. Some areas get hit really hard. You claim that revolutions are in the eyes of the beholder, but who be the holder? Certainly not myself and my neighbors! I don't know what your town thinks, but I doubt that a great depression would thrill them. Unless you are a liberal socialist bordering on favoring anarchy and reparations (or rioting and looting...take your pick ) you would agree with me. This crisis must be prevented.
"A lie can travel half way around the world while the truth is putting on its shoes." ~Mark Twain " *** “…far from science having buried God, not only do the results of science point towards his existence, but the scientific enterprise itself is validated by his existence.”- Dr.John Lennox
“The whole war between the atheist and the theist comes down to this: the atheist believes a 'what' created the universe; the theist believes a 'who' created the universe.” - Criss Jami, Killo
“The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of a doubt, what is laid before him.” — Leo Tolstoy, The Kingdom of God is Within You (1894).
If you worked at a job...a factory, for instance...and 1/3 of the workers were laid off, I guarantee that the othjer 2/3 would feel it also. They likely would be forced to work harder, for one thing.
You socialists never care about the guy next door. You care about India, or LGBTQ cases of individual injustice, or the fact that many people live below the poverty line. And you think that it's horrible for Trump to give a tax cut to that factory that you hypothetically work at. (Perhaps it is/was...I'm a political moderate but I also see the conservative arguments in favor of tax cuts for small businesses in order to stimulate investment and productivity)
Tax hikes may not hurt the top 5% of people, but they sure hurt the middle class earning $75,000.00 to $200,000.00 a year. I'm not sure I agree that the middle two quadrants should be forced to pay more simply to help the bottom one. Why can't we all unite against the top quadrant rather than lower the wages of the working middle class to help the poor guys and get the country out of debt? This is why populism is popular. The middle feels besieged and at risk of being fleeced by the globalist agenda.
"A lie can travel half way around the world while the truth is putting on its shoes." ~Mark Twain " *** “…far from science having buried God, not only do the results of science point towards his existence, but the scientific enterprise itself is validated by his existence.”- Dr.John Lennox
“The whole war between the atheist and the theist comes down to this: the atheist believes a 'what' created the universe; the theist believes a 'who' created the universe.” - Criss Jami, Killo
“The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of a doubt, what is laid before him.” — Leo Tolstoy, The Kingdom of God is Within You (1894).
quote:ONDON (Reuters) -The United States, Britain, and other large, rich nations reached a landmark deal on Saturday to squeeze more money out of multinational companies such as Amazon and Google and reduce their incentive to shift profits to low-tax offshore havens.
Hundreds of billions of dollars could flow into the coffers of governments left cash-strapped by the COVID-19 pandemic after the Group of Seven (G7) advanced economies agreed to back a minimum global corporate tax rate of at least 15%.(...)
The G20 meet later in the month and will have to accept what the big boys suggest yet may suggest consensus. I'm all for globalism if it helps the poorer folks come up without stripping the middle classes of the top nations. We don't want to become poorer, after all, though there was a case made for socialism on Planet Money.
"A lie can travel half way around the world while the truth is putting on its shoes." ~Mark Twain " *** “…far from science having buried God, not only do the results of science point towards his existence, but the scientific enterprise itself is validated by his existence.”- Dr.John Lennox
“The whole war between the atheist and the theist comes down to this: the atheist believes a 'what' created the universe; the theist believes a 'who' created the universe.” - Criss Jami, Killo
“The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of a doubt, what is laid before him.” — Leo Tolstoy, The Kingdom of God is Within You (1894).
Just exactly what is this globalist agenda and why do you think it's bad?
The US Dollar has historically been the prime global reserve currency for close to 70 years. The dollar used to be backed by gold and was strong due to that and due to the fact that we were the top dog coming out of WW II. The good old days as it were. Times when my Father could become a middle-class achiever through hard work. He made enough building houses to support his family and his kids long after he died (prematurely at age 60..cancer) Nowadays, the dollar is through. Government debt, coupled with global awareness will finish it off. Once the world loses confidence in the dollar and the US loses reserve currency status, prices here will skyrocket and we won't get to benefit from being able to create dollars out of thin air to pay our bills. The emerging nations will begin to prosper and buy the things we Americans can no longer afford. Our standard of living will no longer be a given. Should I blame someone else than the globalists? They won't bail us out. As jar always crowed, the bill will get paid. It worries me. ringo is not concerned...he claims that such events happen to many nations in history. This leads to my accusation that socialism has no favorites. I almost believed that the populists would have fought the world to keep their standard of living and opportunities...but I stayed moderate.
dwise1 writes:
I mean outside of trying to get at least halfway decent wages for American workers so that in response the Capitalists turn to far cheaper labor overseas. If a capitalist can manufacture and ship an item for even a few pennies less overseas, then he will do it in less than a heartbeat. The driving force in capitalism (albeit not of the Adam Smith variety) is the bottom line, profit, and the evolution of capitalism drives towards becoming more and more competitive by increasing profits even if it means keeping your workers on slave wages (or eliminating those workers altogether, eg through automation like was done by some companies in the Great Tax Scam of 2017).
So then it is capitalism, not socialism, that is responsible for globalization, for US jobs being lost to overseas.
You have a point. You are probably right. So what good does it do for me to simply blame the wealthy and capitalism? Anglagard and others suggest that we tax them more. But they can simply leave the tax base and live elsewhere. Then what do we have? Some all-inclusive nation of equals...all of us poor. This whole future seems like a no-win situation.
dwise1 writes:
Here's an economics question. How does money move and stay in neighborhoods?
I'll think about it. All I know is that money has to move. It has to circulate. I see the economy these days as akin to a giant game of musical chairs. As long as we spend...as long as the music plays...the money passes through many hands. When and if the music stops, people grab what they can and stash it. Only a few chairs are occupied. The rest of the money (and people) evaporates and falls through the cracks.
My big fear is that the world does not care about the middle class in the United States. They are our competition. And they are hungrier than we are. So far, anyway.
OK. The show is Planet Money on NPR. The episode features Socialist Economist Richard D.Wolff. Have you ever heard of him, ringo? I never had before listening to this podcast.
quote:Richard David Wolff (born April 1, 1942) is an American Marxian economist, known for his work on economic methodology and class analysis. He is Professor Emeritus of Economics at the University of Massachusetts Amherst, and currently a Visiting Professor in the Graduate Program in International Affairs of the New School in New York. Wolff has also taught economics at Yale University, City University of New York, University of Utah, University of Paris I (Sorbonne), and The Brecht Forum in New York City.
In 1988 Wolff co-founded the journal Rethinking Marxism. In 2010 he published Capitalism Hits the Fan: The Global Economic Meltdown and What to Do About It, also released on DVD. In 2012 he released three new books: Occupy the Economy: Challenging Capitalism, with David Barsamian (San Francisco: City Lights Books), Contending Economic Theories: Neoclassical, Keynesian, and Marxian, with Stephen Resnick (Cambridge, Massachusetts, and London: MIT University Press), and Democracy at Work (Chicago: Haymarket Books). In 2019 he released his book Understanding Marxism (Democracy at Work).[8]
Wolff hosts the weekly 30-minute-long program Economic Update, which is produced by the non-profit Democracy at Work, which he co-founded. Economic Update is on YouTube, FreeSpeech TV, WBAI-FM, New York City (Pacifica Radio), CUNY TV (WNYE-DT3), and available as a podcast. Wolff is featured regularly in television, print, and internet media. The New York Times Magazine has named him "America's most prominent Marxist economist".[9] Wolff lives in Manhattan with his wife and frequent collaborator, Harriet Fraad, a practicing psychotherapist.
I dont know if I trust him yet. He is one of those educated elitist liberals. Probably could care less if the US Middle Class suffers.
Edited by Phat, : No reason given.
"A lie can travel half way around the world while the truth is putting on its shoes." ~Mark Twain " *** “…far from science having buried God, not only do the results of science point towards his existence, but the scientific enterprise itself is validated by his existence.”- Dr.John Lennox
“The whole war between the atheist and the theist comes down to this: the atheist believes a 'what' created the universe; the theist believes a 'who' created the universe.” - Criss Jami, Killo
“The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of a doubt, what is laid before him.” — Leo Tolstoy, The Kingdom of God is Within You (1894).
While we are in this topic, Percy...I might ask you if you believe that the US is heading for a rough patch of road financially or whether things will go on cyclically as they always have?
"A lie can travel half way around the world while the truth is putting on its shoes." ~Mark Twain " *** “…far from science having buried God, not only do the results of science point towards his existence, but the scientific enterprise itself is validated by his existence.”- Dr.John Lennox
“The whole war between the atheist and the theist comes down to this: the atheist believes a 'what' created the universe; the theist believes a 'who' created the universe.” - Criss Jami, Killo
“The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of a doubt, what is laid before him.” — Leo Tolstoy, The Kingdom of God is Within You (1894).
The argument goes beyond politics. Both political parties have added to the national debt and ran budget deficits. The debate is not about the differences in ideology so much as the fiscal monetary policies of the Federal Reserve and the Central Banks and the relationship between the government's ability to borrow and essentially create more money out of nothing. The US Dollar is a fiat currency.
quote:The mortgage crisis of 2007 and subsequent financial meltdown, however, tempered the belief that central banks could necessarily prevent depressions or serious recessions by regulating the money supply.10 A currency tied to gold, for example, is generally more stable than fiat money because of the limited supply of gold.11 There are more opportunities for the creation of bubbles with fiat money due to its unlimited supply.
After studying some of what the so-called experts are saying, I am convinced that the dollars days are numbered. Whatever replaces it will be traceable to the fullest extent.
"A lie can travel half way around the world while the truth is putting on its shoes." ~Mark Twain " *** “…far from science having buried God, not only do the results of science point towards his existence, but the scientific enterprise itself is validated by his existence.”- Dr.John Lennox
“The whole war between the atheist and the theist comes down to this: the atheist believes a 'what' created the universe; the theist believes a 'who' created the universe.” - Criss Jami, Killo
“The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of a doubt, what is laid before him.” — Leo Tolstoy, The Kingdom of God is Within You (1894).
I have yet to see any rational arguments that say that things will be the way they always were. You might argue that economic downturns are cyclical, but we are talking about a large part of the wealth of the middle class in America being literally wiped out. Your socialist world and friends under the local bridge may not care, but we do. They call it the great reset. And I am hoping that the whole world shares the bill. Some of us are too old to live under bridges.
"A lie can travel half way around the world while the truth is putting on its shoes." ~Mark Twain " *** “…far from science having buried God, not only do the results of science point towards his existence, but the scientific enterprise itself is validated by his existence.”- Dr.John Lennox
“The whole war between the atheist and the theist comes down to this: the atheist believes a 'what' created the universe; the theist believes a 'who' created the universe.” - Criss Jami, Killo
“The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of a doubt, what is laid before him.” — Leo Tolstoy, The Kingdom of God is Within You (1894).
We're really not. You're the only one who is panicked about that.
Are you saying that you don't see it? Or that you don't really care.
Some liberally minded critics see the US as just another failing empire and that the people getting the outcome that they wanted. *cough..jar...cough*.
My whining is directed at getting you to care...enough to help stop the implosion. The sheeple (Buzzsaw RIP) in America dont see it and it is up to the rest of you to care enought to quit ignoring the problem.
And Percy you would be wise to pay attention. This will wipe out a lot of your assets as well.
I cant figure out why none of you see the latest and greatest bubble. The US Dollar itself.
"A lie can travel half way around the world while the truth is putting on its shoes." ~Mark Twain " *** “…far from science having buried God, not only do the results of science point towards his existence, but the scientific enterprise itself is validated by his existence.”- Dr.John Lennox
“The whole war between the atheist and the theist comes down to this: the atheist believes a 'what' created the universe; the theist believes a 'who' created the universe.” - Criss Jami, Killo
“The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of a doubt, what is laid before him.” — Leo Tolstoy, The Kingdom of God is Within You (1894).
I can discern bullshit from substance, however. They are not simply trying to sell silver. (Though they may have succeeded in selling the book! ) Read the introduction and tell me what you think.
Edited by Phat, : added comment
"A lie can travel half way around the world while the truth is putting on its shoes." ~Mark Twain " *** “…far from science having buried God, not only do the results of science point towards his existence, but the scientific enterprise itself is validated by his existence.”- Dr.John Lennox
“The whole war between the atheist and the theist comes down to this: the atheist believes a 'what' created the universe; the theist believes a 'who' created the universe.” - Criss Jami, Killo
“The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of a doubt, what is laid before him.” — Leo Tolstoy, The Kingdom of God is Within You (1894).
And some people groups would be unfortunately stuck in non-resource rich communities. How will they survive apart from the rest of us?
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