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Just happened upon this quote

"By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some.... The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million can diagnose." John Maynard Keynes Economic Consequences of the Peace (1920)

Anyway thought the quote was interesting given what is happening now.

:blink:

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Inflation is theft and the common man embraces it by trying to force up their wages and agreeing to pay full price for everything without question.

If the BoE is knowingly/deliberately generating inflation to save the banks then the are effectively stealing from us all and must surely be the largest fraud ever undertaken.

People need to wake up to this.

Edited by TheCountOfNowhere
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Just happened upon this quote

"By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some.... The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million can diagnose." John Maynard Keynes Economic Consequences of the Peace (1920)

Anyway thought the quote was interesting given what is happening now.

:blink:

Keynes was also paraphrasing Lenin with that quote, so not quite sure if it's Keynes or Keynes on Lenin.

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"By a continuous process of inflation, ... does it in a manner that not one man in a million can diagnose." John Maynard Keynes Economic Consequences of the Peace (1920)

Oh I dare say there are more than 60 here alone ... then again, maybe that' the extent of it :D

Edited by Sledgehead
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Inflation is theft and the common man embraces it by trying to force up their wages and agreeing to pay full price for everything without question.

If the BoE is knowingly/deliberately generating inflation to save the banks then the are effectively stealing from us all and must surely be the largest fraud ever undertaken.

People need to wake up to this.

This is the problem. We are so close to a complete state failure. We are actually getting shown this actually happening in Greece and Spain, and some how the majority of people are still unaware what is about to happen to them.

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On wikipedia it says that he advocated financing the war by forcing people to save, rather than massive printing, in order to avoid inflation. Trouble is todays Keynesians, like sh1t for brains Krugman, think 'saving' is a dirty word, on the same level as the n-word or something.

Anyway, im perfecting my own Keynesian theorum. It combines free market economics, allowing the constructive destruction stage to fully take its path. Followed by Keynesian stimulus. What i believe is important is that Keynesian stimulus must not be allowed to stop busts, but could play a part in hastening the recovery out of them. It must be 'reactive' rather than 'proactive' IMO and only begin once deleveraging has stopped or greatly slowed.

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Anyway, im perfecting my own Keynesian theorum. It combines free market economics, allowing the constructive destruction stage to fully take its path. Followed by Keynesian stimulus. What i believe is important is that Keynesian stimulus must not be allowed to stop busts, but could play a part in hastening the recovery out of them. It must be 'reactive' rather than 'proactive' IMO and only begin once deleveraging has stopped or greatly slowed.

Isn't that what Keynes advocated himself?

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Just happened upon this quote

"By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some.... The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million can diagnose." John Maynard Keynes Economic Consequences of the Peace (1920)

Anyway thought the quote was interesting given what is happening now.

:blink:

Yes said it before hyper inflation was very good for the elite in zimbabwe (and for a large chunk of Weimar germany) there is a significant (5%) chunk of the population in zim who are doing very very well. If you hold assets in hyper inflation you come out VERY rich, people without assets get very poor. You jut have to look at the extortionate price of goods and services in zim now priced in USD to see what the read wealth of the wealthy now is in zim. The price of one of the many private schools in zim is now ell above the price you would pay in the uk.

Edited by AteMoose
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Just happened upon this quote

"By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some.... The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million can diagnose." John Maynard Keynes Economic Consequences of the Peace (1920)

Anyway thought the quote was interesting given what is happening now.

:blink:

From one JMK quote to another:

In spite of the prophetic trappings with which his devotees have decorated him, Gesell's main book is written in cool, scientific language; though it is suffused throughout by a more passionate, a more emotional devotion to social justice than some think decent in a scientist. The part which derives from Henry George [176], though doubtless an important source of the movement's strength, is of altogether secondary interest. The purpose of the book as a whole may be described as the establishment of an anti-Marxian socialism, a reaction against laissez-faire built on theoretical foundations totally unlike those of Marx in being based on a repudiation instead of on an acceptance of the classical hypotheses, and on an unfettering of competition instead of its abolition. I believe that the future will learn more from the spirit of Gesell than from that of Marx. The preface to "The Natural Economic Order" will indicate to the reader, if he will refer to it, the moral quality of Gesell. The answer to Marxism is, I think, to be found along the lines of this preface.

Edited by scepticus
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Just happened upon this quote

"By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some.... The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million can diagnose." John Maynard Keynes Economic Consequences of the Peace (1920)

Anyway thought the quote was interesting given what is happening now.

:blink:

He was writing about what Lenin is claimed to have said.

Perhaps you'd prefer to ban anyone talking about anything except gold, god and guns?

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From one JMK quote to another:

In spite of the prophetic trappings with which his devotees have decorated him, Gesell's main book is written in cool, scientific language; though it is suffused throughout by a more passionate, a more emotional devotion to social justice than some think decent in a scientist. The part which derives from Henry George [176], though doubtless an important source of the movement's strength, is of altogether secondary interest. The purpose of the book as a whole may be described as the establishment of an anti-Marxian socialism, a reaction against laissez-faire built on theoretical foundations totally unlike those of Marx in being based on a repudiation instead of on an acceptance of the classical hypotheses, and on an unfettering of competition instead of its abolition. I believe that the future will learn more from the spirit of Gesell than from that of Marx. The preface to "The Natural Economic Order" will indicate to the reader, if he will refer to it, the moral quality of Gesell. The answer to Marxism is, I think, to be found along the lines of this preface.

Aye, Gesell is well worth reading. He offered solutions to both the money and the land problems. Worgl (after setting up a currency described by Gesell) was an economic miracle in the great depression until the central bank enforced their currency monopoly.

Edited by Self Employed Youth
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Aye, Gesell is well worth reading. He offered solutions to both the money and the land problems. Worgl (after setting up a currency described by Gesell) was an economic miracle in the great depression until the central bank enforced their currency monopoly.

Do you want to put in some links? I've spent 10 mins working out how a second division Dutch footballer was able to develop a coherent economic theory.

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Do you want to put in some links? I've spent 10 mins working out how a second division Dutch footballer was able to develop a coherent economic theory.

http://www.complemen...g/materials.php

Search for 'Gesell' on here and you can download The natural economic order in a zip file.

There is also a cartoon to explain economic ideas also available in a zip file.

Here is a bit about worgl;

http://alt-money.tri...aa-b789d1757037

Edit; removed quote - please click on link to read through the article.

Edited by Self Employed Youth
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Anyway thought the quote was interesting given what is happening now.

My view is that the inflation has already happened - otherwise what does all this pain and suffering over the ridiculous price of accommodation mean?

What is happening now is a panic over the seizure in the inflation engine. It will fail, and our elected weirdos decided not to send it for repair but to gun it down the motorway.

Won't somebody think of the children?

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This is the problem. We are so close to a complete state failure. We are actually getting shown this actually happening in Greece and Spain, and some how the majority of people are still unaware what is about to happen to them.

+1 But it was probably the same in the country`s you mention and they probably thought it would not happen until it actually did then it`s to late

The propaganda obviously works

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This is the problem. We are so close to a complete state failure. We are actually getting shown this actually happening in Greece and Spain, and some how the majority of people are still unaware what is about to happen to them.

It's because they've spent decades being insulated from reality! Every time the debt-financed speculative bubble looked like unwinding the central banks have stepped in with bailouts and floods of liquidity and allowed the gamblers to roll their losing bets up into even bigger ones.

A corollary of no more boom and bust is the continuous suppression of volatility. The ponzi economies of the West have grown dependably but only by displacing risk into the fat tails of probability distribution where it can no longer be observed until it blows up spectacularly and without warning.

Taleb explores the consequences of volatility suppression/risk displacement here:

The Black Swan of Cairo

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Just happened upon this quote

"By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some.... The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million can diagnose." John Maynard Keynes Economic Consequences of the Peace (1920)

Anyway thought the quote was interesting given what is happening now.

:blink:

And indeed why wouldn't Merv and politicians go down the inflation personal ''enrichment'' route'. Somebody has to pay for the one trillion black hole in public sector final salary pensions and the impossible costs of health services to an ageing popualtion. They have got a huge vested interest in confiscating savings to enrich their retirements, so I suppose we had better bend over and take the punishment.

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http://www.complemen...g/materials.php

Search for 'Gesell' on here and you can download The natural economic order in a zip file.

There is also a cartoon to explain economic ideas also available in a zip file.

Here is a bit about worgl;

http://alt-money.tri...aa-b789d1757037

Edit; removed quote - please click on link to read through the article.

And when you've read the above - you can head on over to the "N I R P" thread:

http://www.housepricecrash.co.uk/forum/index.php?showtopic=96852&st=0

and perhaps after that the 'NIRP Warning' thread.

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Inflation is, quite literally, a tax on cash and savings.

Exactly. And if you didn't pay that tax via inflation then you would pay it some other way.

There are a few good things about inflation, namely the tax is proportional to how much cash/savings you have, that it is paid by any holder of the currency or debts due in the currency. This means that a burden that would be shouldered solely by UK nationals is shared amongst all world holders of the currency. The tax is also easily avoidable. You don't have to hold much in currency if you don't want to and can therefore avoid the inflation tax if you wish. Surely if you dislike inflation you choose not to pay the tax by piling into assets.

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Exactly. And if you didn't pay that tax via inflation then you would pay it some other way.

There are a few good things about inflation, namely the tax is proportional to how much cash/savings you have, that it is paid by any holder of the currency or debts due in the currency. This means that a burden that would be shouldered solely by UK nationals is shared amongst all world holders of the currency. The tax is also easily avoidable. You don't have to hold much in currency if you don't want to and can therefore avoid the inflation tax if you wish. Surely if you dislike inflation you choose not to pay the tax by piling into assets.

A choice between depreciating cash holdings or depreciating property. Equities and commodities mean a bit of a gamble and they could go either way.

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