tag:blogger.com,1999:blog-2761684730989137546.post772530588450525337..comments2024-03-29T07:30:30.121-04:00Comments on Mike Norman Economics: Why Does an Industry That Is More Trouble Than It's Worth, RUN All the Real Industries?mike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-2761684730989137546.post-9847750575224878982013-05-01T08:59:41.400-04:002013-05-01T08:59:41.400-04:00Who is going to "bell the cat" and how? ...<i>Who is going to "bell the cat" and how? </i> Tom Hickey<br /><br />The problem is "cognitive capture"; most folks literally cannot conceive of a world without banks and credit so they keep trying to fix the unfixable.Anonymoushttps://www.blogger.com/profile/13859046687902645077noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-43354315470453730362013-05-01T08:53:11.429-04:002013-05-01T08:53:11.429-04:00But I really don't think that very many people...<i>But I really don't think that very many people, including most of the MMT crowd, are willing to put a stake through the heart of the government backed banking cartel yet.</i><br /><br />Well, that is the problem, isn't it? It will take a revolution to change that, since these are the people that are in charge nationally and internationally.<br /><br />Who is going to "<a href="http://en.wikipedia.org/wiki/Belling_the_cat" rel="nofollow">bell the cat</a>" and how?Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-47070072306589196992013-05-01T08:16:12.322-04:002013-05-01T08:16:12.322-04:00Well, the capital gains tax on common stock has go...Well, the capital gains tax on common stock has go if we are to encourage the use of common stock as a private money form. Otherwise, decreases in the value of fiat would register as increases in the value of common stock.<br /><br />But I really don't think that very many people, including most of the MMT crowd, are willing to put a stake through the heart of the government backed banking cartel yet.<br /><br />What will be interesting is when price inflation restarts. Will the MMT crowd push for restrictions on bank leverage to save deficit spending or will deficit spending be sacrificed to preserve the ability of the banks to create credit? And no, raising interest rates probably won't be sufficient to curb price inflation since speculators profit off the spread between what they can borrow at and anticipated prices.Anonymoushttps://www.blogger.com/profile/13859046687902645077noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-85800492129013386242013-04-30T21:38:04.160-04:002013-04-30T21:38:04.160-04:00All those things have been done, at various times,...All those things have been done, at various times, between 1933 and today. It's perfectly doable in our existing fiat currency system.<br /><br />Your issues all seem to be with the current management, not the available operations. :)<br /><br />Everything you want to do is perfectly doable, though maybe not necessary, or even optimal.<br /><br />All you have to do is fix politics first. With motives conveniently fixed, the existing operations are capable of anything.Roger Ericksonhttps://www.blogger.com/profile/17515506247888521516noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-27344376599899395852013-04-30T19:50:52.925-04:002013-04-30T19:50:52.925-04:00Do you have another suggestion? One that works any...<i>Do you have another suggestion? One that works any better in actual practice rather than in theory alone? :)</i> Rodger Erickson<br /><br />Well, first we need to clean-up the mess caused by the existing system. The most just way to do that is a universal and equal bailout of the entire population, including non-debtors, with new fiat (preferably Greenbacks) at least until all deposits are 100% covered by reserves. The bailout should be combined with a temporary ban on new credit creation and metered to replace existing credit as it is repaid PLUS a bit more to err on the side of excess money creation.<br /><br />And after the universal bailout period, when all deposits are 100% backed by reserves, then establish a new Postal Savings Service to provide risk-free fiat storage and transaction services to all citizens for free up to normal household limits. And then announce that government deposit insurance and the lender of last resort will be terminated in 6 months. The announcement would cause a massive run on the banks but who cares since all demand deposits would be 100% covered by reserves?<br /><br />And then, after the 6-months, allow banks to function as purely private businesses and extend as much credit as they dare with the firm understanding that they and their now voluntary depositors would bear all the risk.<br /><br />And, in case more endogenous money creation is needed than purely private banks can provide, encourage the use of common stock as a private money form.<br /><br />Beer's OK and more than OK every now and then.<br /><br /><br />Anonymoushttps://www.blogger.com/profile/13859046687902645077noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-31953851539520991862013-04-30T18:01:31.376-04:002013-04-30T18:01:31.376-04:00Ok, I see where you are coming from.
Yes, every s...Ok, I see where you are coming from.<br /><br />Yes, every system is vulnerable, and only as good as it's instantaneous regulation.<br /><br />Yet that's true for every bird flapping it's wings to stay aloft, and every person dynamically utilizing all their 700 or so distinct muscles to walk to the fridge for a beer.<br /><br />Ditto for cultures. They stay aloft or upright as long as they can, with intermittant stumbles or even periods of voluntary drunkeness or other forms of intoxication.<br /><br />Do you have another suggestion? One that works any better in actual practice rather than in theory alone? :)<br /><br />Meanwhile, my stomach is calling for another beer, other organs are saying to not overdue it, & my vestibular system is saying that forward shields are already reduced to 50% capacity and sensor function is unreliable. Nevertheless, the Captain's log indicates a uniquely human pleasure is derived from constantly pushing the system to all discoverable limits, and the practice derived from keeping it upright despite all perturbations.<br /><br />Captain says the altered awareness of all experienced states will come in handy when unexpected contingencies arive.<br /><br />So far, she's always been right, so we'll carry on with the string of impaired situations .. despite all grumblings from the last, affronted Vulcan of an otherwise extinct subspecies. Somehow, in this unpredictable world, all predictive logic in actual practice only predicts even earlier demise! <br /><br />So we're sticking with all wobbly systems, barely held together with baling wire & daily delusions.<br /><br />(Have you tried beer? The exotic recipe of SOMA also reportedly relieves the stress of experiencing adaptive illogic in action. Rationalize as you will, but please do continue rather than opting out. We're still going - boldly or not - where no logic has ever led. :) )Roger Ericksonhttps://www.blogger.com/profile/17515506247888521516noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-83911488812204733122013-04-30T16:15:29.828-04:002013-04-30T16:15:29.828-04:00?? FB, a public monopoly on fiat currency supply ...<i>?? FB, a public monopoly on fiat currency supply </i> Rodger Erickson<br /><br />Certainly the government SHOULD have a monopoly on fiat creation. But it doesn't. Instead, the central bank is allowed to create new fiat and lend or spend it into the economy, mostly for the sake of the banks.<br /><br /><i>is part & parcel of how a "free" market finances and provisions itself in an organized manner.</i> Rodger Erickson<br /><br />It's not "free." Instead, business and other so-called "creditworthies" are allowed to borrow new purchasing power into existence and thereby dilute the existing purchasing power of the less or non "creditworthies."<br /><br />Your beloved money system is rotten every which way from a moral and social stability viewpoint and history proves it.Anonymoushttps://www.blogger.com/profile/13859046687902645077noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-81048970491801111752013-04-30T15:58:33.988-04:002013-04-30T15:58:33.988-04:00?? FB, a public monopoly on fiat currency supply i...?? FB, a public monopoly on fiat currency supply is part & parcel of how a "free" market finances and provisions itself in an organized manner.<br /><br />Fiat currency is simply public regulation of public credit and publit trust. If we can't cooperate on something so simple, what CAN we hope to organize?<br /><br />Don't see where you get the idea that group guarantee of regulated liquidity equates to stealing purchasing power. That is conflating two separable topics.<br /><br />1) stable store of value (no such thing in an evolving world; EVERYTHING is obsolete in short order, including existing generations and all their static & dynamic assets; Best people can do in nimbly trade continuously, so as to keep up with context-dictated options; Access to emerging options is the ultimate definition of "value")<br /><br />2) Purchasing power of individuals is a dynamic function of [static+dynamic] assets. In an evolving culture and economy, that purchasing power is SUPPOSED to float. Get over it. We have zero predictive power, but potentially infinite adaptive power. No whining, only optimal adaptation. Use your wits, not your complaints - and recruit your communities group intelligence too. The complaints alone constitue a losing strategy offered to a universe that simply does not care.<br /><br />The only care that exists is our care for one another. Recruit it, and invest in it. It's called the return-on-coordination - and it dwarfs ALL OTHER RETURNS! Any perceived loss of other forms of purchasing power is negligible, so just keep your eyes on the prize.Roger Ericksonhttps://www.blogger.com/profile/17515506247888521516noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-20722335156413854512013-04-30T15:06:07.881-04:002013-04-30T15:06:07.881-04:00I should have said "government provided lende...I should have said "government provided lender of any resort".<br /><br />Look. It's absurd to think the free market cannot finance itself ethically. And ethically does not include stealing (or at best borrowing without adequate or any compensation) the purchasing power of innocent bystanders.Anonymoushttps://www.blogger.com/profile/13859046687902645077noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-7456486557224116892013-04-30T14:25:23.006-04:002013-04-30T14:25:23.006-04:00F.Beard "Banks should not have access to a fi...F.Beard "Banks should not have access to a fiat lender of last (or any) resort"<br /><br />I wouldn't go that far, FB. Like any biological process, utility is found within a range of expression, bounded by tolerance limits. If something is useful, just regulate it's tolerance limits, don't throw out bits of the baby with the bathwater. People that recommend excising pounds of functional "flesh" never know what interdependency they're breaking.Roger Ericksonhttps://www.blogger.com/profile/17515506247888521516noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-46711942088240357912013-04-30T13:44:06.349-04:002013-04-30T13:44:06.349-04:00I wish people would call Wall Street and the City ...I wish people would call Wall Street and the City etc by their rightful name. It's the fraud sector, the extortion sector. To call it finance is like saying a brothel is a bar because they serve drinks. People's sense of proportion is completely lost when it comes to the range of activities these institutions engage in.RDMKRhttps://www.blogger.com/profile/00547758189555842953noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-91049732877378202252013-04-30T12:18:40.047-04:002013-04-30T12:18:40.047-04:00Isn't that perverting the very definition of f...<i>Isn't that perverting the very definition of fiat?</i> Rodger Erickson<br /><br />Indeed it is. Banks should not have access to a fiat lender of last (or any) resort nor should their deposits be insured by the fiat sovereign nor should they have any other explicit or implicit privileges from the government.<br /><br />It's worse than the tail wagging the dog; the blood-sucking ticks on the dog are in charge!Anonymoushttps://www.blogger.com/profile/13859046687902645077noreply@blogger.com