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Thread: Debt-Based Money Corrodes Society

  1. #1

    Debt-Based Money Corrodes Society

    http://www.zerohedge.com/news/2017-0...rrodes-society

    Authored by Brian Maher via The Daily Reckoning,

    We open today’s reckoning with a hypothesis:

    The current monetary system debauches the culture.

    Long-suffering readers are familiar with our… diminished regard for paper money.

    Paper money — or digital money nowadays — is the great bogeyman of the boom/bust cycle. It inflates bubbles of every model and make.

    Meanwhile, paper money fuels big government… as oxygen fuels fire.

    But paper money’s effects on the culture?

    “It has a very important impact on our culture,” writes economist Jorg Guido Hulsmann.

    Under “natural money” like gold Hulsmann explains, prices tend to fall over time.

    So natural money encourages the virtues of saving… thrift… deferred gratification. It sets the mind to the future:

    In a free economy with a natural monetary system, there is a strong incentive to save money… Investments in savings accounts or other relatively safe investments also play a certain role, but cash hoarding is paramount.


    Before the 20th century, explains Hulsmann, debt was a cultural taboo… a big scarlet “D.”

    Credit for households was virtually unknown, he says. And only the poorest households resorted to debt-financed consumption.

    Ah, but then the 20th century came along with its wars… its social movements… and its cranks…

    Gold is a famously uncooperative agent of change.

    It resists social uplift, in the same way an old man resists a new pair of shoes.

    It turns away from the sound of trumpets.

    “You go over there,” gold says. “I’m staying here.”

    “The trouble with gold is that it turns its back on world improvers, empire builders and do-gooders,” wrote Bill Bonner and our leader Addison Wiggin in Empire of Debt.

    “The nice thing about gold is that it is so unresponsive,” they continued. “It neither laughs nor applauds.”


    And that’s why it couldn’t last…

    Only a debt-backed system of paper money could finance the great wars, the social improvements and the fevered dreams of the 20th century.


    But the same debt-based money also seeped its way into the cultural marrows… got into the bloodstream… and went to work…

    The slow grind of saving yielded to lure of the fast buck. Hulsmann says it all encouraged a short-term perspective.

    “Fiat-money systems tend to make people insatiable in their quest for ever higher monetary returns on their investments,” Hulsmann notes.

    Hurry, hurry, hurry. More, more, more.


    Hulsmann argues things work differently under a natural monetary system.

    As savings increase under such a system, the return on investments of all sorts tends to diminish.

    And instead of chasing rainbows, people direct their monies in pursuit of other worthwhile interests, including philanthropy:

    It becomes ever less interesting to invest one’s savings in order to earn a return, and thus other motivations shift into the foreground. Savings will be used increasingly to finance personal projects including the acquisition of durable consumers’ goods, but also philanthropic activity. This is exactly what we saw in the West during the nineteenth century.


    ...
    Full article on link.
    1776 > 1984

    The FAILURE of the United States Government to operate and maintain an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    Belief, Money, and Violence are the three ways all people are controlled

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.



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    Quote Originally Posted by DamianTV View Post
    ...ugh...this article affirms republican-radio-level thinking...quibbling like a republicrat fool about "WHAT" should be used 'as money'...instead of focusing on "WHO" is controlling the volume of money and "WHO" is acquiring any newly-created money in 'the first round of spending,' and "HOW" is this being done (the fraudulent practice of 'deposit creation,' etc..)...ugh....
    Last edited by H. E. Panqui; 06-13-2017 at 08:23 AM.

  4. #3
    Quote Originally Posted by H. E. Panqui View Post
    ...ugh...this article affirms republican-radio-level thinking...quibbling like a republicrat fool about "WHAT" should be used 'as money'...instead of focusing on "WHO" is controlling the volume of money and "WHO" is acquiring any newly-created money in 'the first round of spending,' and "HOW" is this being done (the fraudulent practice of 'deposit creation,' etc..)...ugh....
    We don't want you to think too much. Now shut up and go to work for another day of role playing.

  5. #4
    Quote Originally Posted by H. E. Panqui View Post
    ...ugh...this article affirms republican-radio-level thinking...quibbling like a republicrat fool about "WHAT" should be used 'as money'...instead of focusing on "WHO" is controlling the volume of money and "WHO" is acquiring any newly-created money in 'the first round of spending,' and "HOW" is this being done (the fraudulent practice of 'deposit creation,' etc..)...ugh....
    You can't teach a child to read until you teach them the alphabet, some people are not as smart as you, they need baby steps.
    You have done the equivalent of a college professor decrying a child's book as infantile, I hope it made your ego feel secure for the day.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankind…it’s people I can’t stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment

  6. #5
    Paper money — or digital money nowadays — is the great bogeyman of the boom/bust cycle. It inflates bubbles of every model and make.
    No form of money has been able to avoid the boom bust cycle or bubbles.

    “Fiat-money systems tend to make people insatiable in their quest for ever higher monetary returns on their investments,” Hulsmann notes.
    Also true of any monetary system. Greed is human nature.

    Ah, but then the 20th century came along with its wars… its social movements… and its cranks…
    We were under a gold standard for much of the 20th Century. Didn't prevent anything. Including WWI, WWII, and the Great Depression.


    "If only we all had gold- life would be perfect!" You could remove "debt based" from the thread title and still be true. All money does. It is the nature of people- not what specifically they use for money.
    Last edited by Zippyjuan; 06-13-2017 at 01:49 PM.
    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    "Truth isn't truth"- Rudy Giuliani

    "China has total respect for Donald Trump and for Donald Trump's very, very large brain," - Donald Trump.

    I am Zippy and I approve of this post. But you don't have to.

  7. #6
    Quote Originally Posted by Zippyjuan View Post
    No form of money has been able to avoid the boom bust cycle or bubbles.



    Also true of any monetary system. Greed is human nature.



    We were under a gold standard for much of the 20th Century.
    Didn't prevent anything. Including WWI, WWII, and the Great Depression.


    "If only we all had gold- life would be perfect!" You could remove "debt based" from the thread title and still be true. All money does. It is the nature of people- not what specifically they use for money.
    Not even the State propaganda outlet History Channel will support this silly claim. http://www.history.com/this-day-in-h...-gold-standard
    Quote Originally Posted by Torchbearer
    what works can never be discussed online. there is only one language the government understands, and until the people start speaking it by the magazine full... things will remain the same.
    Hear/buy my music here "government is the enemy of liberty"-RP Support me on Patreon here Ephesians 6:12

  8. #7
    Quote Originally Posted by heavenlyboy34 View Post
    Not even the State propaganda outlet History Channel will support this silly claim. http://www.history.com/this-day-in-h...-gold-standard
    There was still at least a partial standard until 1971 when Nixon closed the gold window (dollar backed by gold for international trade). Silver coins were in use until the 1960's. The History Channel date still covers the Great Depression and WWI. It did not prevent wars, recessions, or bubbles.
    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    "Truth isn't truth"- Rudy Giuliani

    "China has total respect for Donald Trump and for Donald Trump's very, very large brain," - Donald Trump.

    I am Zippy and I approve of this post. But you don't have to.

  9. #8
    Quote Originally Posted by Zippyjuan View Post
    There was still at least a partial standard until 1971 when Nixon closed the gold window (dollar backed by gold for international trade). Silver coins were in use until the 1960's. The History Channel date still covers the Great Depression and WWI. It did not prevent wars, recessions, or bubbles.
    We all here know it was a partial standard, but that's not what you said in the post from you I quoted.
    Quote Originally Posted by Torchbearer
    what works can never be discussed online. there is only one language the government understands, and until the people start speaking it by the magazine full... things will remain the same.
    Hear/buy my music here "government is the enemy of liberty"-RP Support me on Patreon here Ephesians 6:12



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  11. #9
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    Quote Originally Posted by Swordsmyth View Post
    You can't teach a child to read until you teach them the alphabet, some people are not as smart as you, they need baby steps.
    You have done the equivalent of a college professor decrying a child's book as infantile, I hope it made your ego feel secure for the day.


    "[child's book author] Brian Maher is the Daily Reckoning's Managing Editor. Before signing on to Agora Financial, he was an independent researcher and writer who covered economics, politics and international affairs. His work has appeared in the Asia Times and other news outlets around the world. He holds a Master’s degree in Defense & Strategic Studies."

    ...ugh...and please don't compare me to a 'college professor'...especially an economics professor...ime, they tend to be the worst ignoramuse$...truly/fundamentally ignorant, yet confident in their 'knowledge'...ugh...

    #peoplewhodon'tunderstandthehideousoriginandnature ofevenonedollarshouldstfuabouttheilliondollarecono my
    Last edited by H. E. Panqui; 06-14-2017 at 05:55 AM.



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