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"Credit" is the creation of new purchasing power. It therefor dilutes existing purchasing power, at least temporarily and often, as in the case of land, permanently. So who then will the government deem "creditworthy" of legally stolen purchasing power? Those who are already rich as the private sector does? Cronies?
F. Beard, I know many have asked you this before, but I'll ask again :) So based on what you are saying (creation of new credit/dollar dilutes existing purchasing power), are you implying that the very first dollar ever created is worth all of today's wealth?
Obviously, other money existed before the first dollar, so no.
But hey, common stock is an ethical form of endogenous private money creation - the existing stock (money) holders can (at least in principle) vote on any new issue (to buy new assets). Moreover, the existing money holders would (hopefully) profit as the new assets came online - thus rewarding the temporary dilution of their common stock money.
But what do the non-creditworthy get in our system? Maybe cheaper/better consumer goods and a job (at least till the bust takes it away) until that job is replaced with a robot financed with the worker's own legally stolen purchasing power.
Ever seen a balance sheet? Look on the right and note that Equity is there with Liabilities. Both are backed by the Assets.
So tell me why money can only be issued as Liabilities? In fact, money can be issued as Equity too and often is as companies use their common stock for asset purchases.
6 comments:
"Credit" is the creation of new purchasing power. It therefor dilutes existing purchasing power, at least temporarily and often, as in the case of land, permanently. So who then will the government deem "creditworthy" of legally stolen purchasing power? Those who are already rich as the private sector does? Cronies?
F. Beard, I know many have asked you this before, but I'll ask again :)
So based on what you are saying (creation of new credit/dollar dilutes existing purchasing power), are you implying that the very first dollar ever created is worth all of today's wealth?
Obviously, other money existed before the first dollar, so no.
But hey, common stock is an ethical form of endogenous private money creation - the existing stock (money) holders can (at least in principle) vote on any new issue (to buy new assets). Moreover, the existing money holders would (hopefully) profit as the new assets came online - thus rewarding the temporary dilution of their common stock money.
But what do the non-creditworthy get in our system? Maybe cheaper/better consumer goods and a job (at least till the bust takes it away) until that job is replaced with a robot financed with the worker's own legally stolen purchasing power.
Hey Mr.,
Ever seen a balance sheet? Look on the right and note that Equity is there with Liabilities. Both are backed by the Assets.
So tell me why money can only be issued as Liabilities? In fact, money can be issued as Equity too and often is as companies use their common stock for asset purchases.
Oh, and I have owned stock.
Better trolls, please.
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