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House Price Crash Forum

Cause Of Today's Economic Crises: Too Much Thrift


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What we are finding is that the whole of economci life is boiling down to a big fight over who controls the externalising agency.

lefties want the central bank to social engineer.

right wingers want it to wage war

business want access to it to beat their competitors

unions want wages to be printed up

etc etc

They gotta give it up - we need a seperation of business and state in the same way we sperarated church and state.

agree 100%.

I think we agree on more points than we disagree.

The sole area in which we remain at odds is our view of the equilibrium of human social interactions and the limits that places on what is possible.

That is why I would like to see the amount of base money fixed and the government budget balanced and then let the market set interest rates +ve or -ve as it sees fit.

That is the pure credit economy.

ofc it says nothing about governance, but if we could achieve the above I feel we'd have a good shot at reducing the violence in play. As ever though, it is sometimes necessary to collectively do the wrong thing for the right reasons, and in this case the 'wrong thing' is to delete the concept of money, by fiat.

Then we can be free, except for the above. Its a paradox, as is everything to do with the dichotomy between the individual and the sum of humanity.

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agree 100%.

I think we agree on more points than we disagree.

The sole area in which we remain at odds is our view of the equilibrium of human social interactions and the limits that places on what is possible.

That is why I would like to see the amount of base money fixed and the government budget balanced and then let the market set interest rates +ve or -ve as it sees fit.

That is the pure credit economy.

You can't do that without a monopoly and all monopolies come from a monopoly on the use of violence.

Do I realyl have to say why a monopoly on force doesn't do the right thing for the good of all?

ofc it says nothing about governance, but if we could achieve the above I feel we'd have a good shot at reducing the violence in play. As ever though, it is sometimes necessary to collectively do the wrong thing for the right reasons, and in this case the 'wrong thing' is to delete the concept of money, by fiat.

Then we can be free, except for the above. Its a paradox, as is everything to do with the dichotomy between the individual and the sum of humanity.

The paradox is that when everyone is maximally selfish everyone is better off as a whole.

parasites love self sacrifice.

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I still can't grasp this money thing.

My latest train of thought is articulated over at the Khan Academy on You tube. The gist is inflation results from too high a level of capacity utilisation. So if capacity is underutilised then producers will not increase prices because they need to fill their capacity. When their productive capacity is fully utilised then they will increase prices because they can choose to sell to the highest paying customers.

So that seems logical to me.

Up to 2007 we are all merrily indulging ourselves, what happened to reduce our appetite for consumption? Was it really just the control mechanism of money. The reduced availability of credit was the tool used to suppress demand. The resources were there, they still are, is there a reason why it was felt necessary to suppress demand?

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  • 2 weeks later...

right wingers want it to wage war

Yes. Waging war is the most common solution to deflation. But the problem is that with so many weapons of mass destruction in so many hands waging a major wordwide all-out war is not what the bankers or anyone else wants (at least the rational ones).

So. Does this mean that the bankers and the politicians must share power in order to survive?

Are we headed to for a NWO world government and world currency?

What are our real practical alternatives to a wordwide all-out war?

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Yes. Waging war is the most common solution to deflation. But the problem is that with so many weapons of mass destruction in so many hands waging a major wordwide all-out war is not what the bankers or anyone else wants (at least the rational ones).

Well i'd say that inflation is the most common response to deflation, and war is the most common response to having value inflated away.

So. Does this mean that the bankers and the politicians must share power in order to survive?

Are we headed to for a NWO world government and world currency?

Pipe dream, a prayer for survival.

What are our real practical alternatives to a wordwide all-out war?

A free market. Let the "elite" recognise that no one wants what they are shovelling.

They can either go quietly or go noisily, bu tthey are going. Too much profit in it for it not to happen.

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  • 2 weeks later...

Well i'd say that inflation is the most common response to deflation, and war is the most common response to having value inflated away.

Pipe dream, a prayer for survival.

A free market. Let the "elite" recognise that no one wants what they are shovelling.

They can either go quietly or go noisily, bu tthey are going. Too much profit in it for it not to happen.

So, you are ok with dis-mantling the state. Are you an Austrian? Do you really think anarcho-capitalism can really work in the real world?

If U.S. government was dissolved would not the Chinese come here and fill the void by feeding all the hungry people and taking over the place?

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