These moves will be sold as “for the public’s good,” when they happen. But the reality is that it’s all about stopping people from moving their capital into actual physical cash."
http://www.zerohedge.com/news/2015-10-09/europe-reveals-how-accounts-will-be-frozen-during-next-crisis
I'm confused, I thought that QE and fiscal deficits (DEBT!!!!!!!) were evil Govt manipulations of the monetary system that would lead to fiat currency collapse and hyperinflation. And now those idiots are complaining that the big bad Govt is going to prevent them from getting their Govt fiat out of the bank. Its just little pieces of paper anyway, not a real man's currency like gold bricks or something.
This is another perfect example of why Govt IOUs are on the top of the money pyramid, we are on the US currency standard. The thing that makes the entire private banking system run smoothly even in times of crises is the guarantee the Govt makes that keep commercial bank IOUs trading at par with Govt fiat. Instead of bank customers having piece of mind because they can always withdraw their deposited value worth of commercial bank promises in gold or gold certificates, now you get something even better, US Govt tax credits in paper form. Your welcome.
5 comments:
"The thing that makes the entire private banking system run smoothly even in times of crises is the guarantee the Govt makes that keep commercial bank IOUs trading at par with Govt fiat."
That seems to be a feature that is lacking with the Euro, perhaps that is by design.
"keep the government out of my Medicare!"
Yes this type of cognitive dissonance is enough to sprain your brain on thats for sure.
To carry on further in the vein that Matt did above, how bout that commercial on Fox News channel no less with former real conservative Fred Thompson trying to push those "Govt insured" reverse mortgages. Although to show his conservative cred he does say at some point "by president Reagan".
Its beyond me how this guy can run for president on a platform saying the govt cant do anything but get in peoples way and turn around and hawk shady sounding reverse mortgages and assuage your fears by saying "Don't worry, the govt will protect and guarantee this product!!" Fuck!ng sheister!
Greg, This is a demonstration of stupidity imo.....
Mr. Franko:
If you are going to distort your opponents’ ideas, you should try learning them first.
1. People are compelled to use fiat funny money because one must pay capital gains and sales taxes on the transaction if you use precious metals as money. If fiat is so wonderful, why the threat of state violence, fines and prison against those who wish to use other types of money? The problem you think you are solving with your rampant violence does not exist. Your violence does exist.
2. Since one is essentially compelled to use fiat funny money by the threat of violence, why shouldn’t someone who fears the authoritarian state be concerned about a bank freeze?
3. There are endless posts on this blog about our wonderful out-of-control government. That is a plus for this website. Why give those same monsters control of a system that, as you say, removes “revenue constraint” from their nefarious activities?
4. Austrian analysis is aware from the get-go that emissions of fiat money result in the transfer of wealth and purchasing power flowing to those who receive it first from those receiving it last or not at all. We believe this to be profoundly immoral and disgraceful and to be the major cause of economic insecurity. It creates the problem it claims to be solving, but that problem does not otherwise exist without the fiat distortions. Nevertheless, this is the centerpiece of your authoritarian dreams. Why would anyone expect that good people would ever be in control of such a system of theft which is based upon violence? Who’s the moron now?
5. Both Austrian writers Mish Shedlock and David Stockman have been predicting serious asset deflation, not hyperinflation.
Asset inflation to the point of creating bubbles is another thing. The busting of bubbles would be a deflation event in my model and I would expect velocity to drop constituting deflation in Fekete's model as well.
http://globaleconomicanalysis.blogspot.com/2015/04/another-definition-of-deflation-antal.html
I have never predicted hyperinflation. I predict serious recessions that will invariably follow asset bubbles blown up with fiat funny money loans. In order to understand that analysis, you would have to understand the central Austrian concept of “economic calculation” which was central to Mises' demonstration of the impossibility of socialism back in 1922. Big time academic socialist Robert Heilbroner admitted after the collapse of the socialist tyrannies that Mises had been right.
https://reason.com/archives/2005/01/21/the-man-who-told-the-truth
6. Once an artificial boom has been initiated by fiat funny money increases and government spending, the boom can only be maintained with more of the same. That seems to be your concern as well. There is no question that a removal of the artificial stimulus will cause a disturbance as investments and prices seek unstimulated levels. Again, the problem is with the violent government intervention trying to solve problems that don’t otherwise exist.
I await your usual silence and incomprehension in your response.
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