Friday, July 2, 2010

Fiat money conspiracy theory could send us to depression

Are our economic fears now being realised?

Towards the end of this article it says: “What worries us is the current backlash we are seeing against debt, and the fiat money conspiracy, and all these fears you see circulating about impending inflation. It is all very dangerous. If productivity is rising, and given the advances in technology and the greater specialisation that is coming with globalisation, it surely should be, then we need an expanding money supply. We need debt levels to rise, or else demand will lag further and further behind potential. It continues: In reacting against the practices of the last decade, we are in real danger of overreacting, castigating all debt as bad, and sending the global economy into deep, deep recession, as a result.

Posted by jac nixon @ 12:17 PM (2379 views)
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14 thoughts on “Fiat money conspiracy theory could send us to depression

  • what amazes me is estate agents here are some scenarios I have witnessed.

    1) when i save a property on rightmove, suddenly it goes under offer or is sold, yet it reappears a few weeks later with another agent

    2) when visiting an estate agents, asking about a property, any property it doesnt matter or appear to matter the response is always the same, “there is a lot of interest in the property, I have shown a lot of people around it and you will have to put a higher than advertised price in in order to secure the property”

    it amazes me how these people employed as agents can so openly tell lies, mislead or intentionally try to defraud you..

    They should be all controlled..

    Every time i walk past agents they are empty, people in general are more fearful now than ever, you hear people talking about how bad things are in shops…

    If only estate agents didnt make themselves look so stupid or inept as telling lies just indicates their stupidity and contempt they have for people entering their shops

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  • It is all very dangerous.

    Printing money like there is no tomorrow is far more dangerous. I think credit contraction is quite appropriate, given the massive expansion of the past few years….it obviously could not go on indefinitely. It’s just the system being balanced – but of course, there are people who want to good times to carry on ad infinitum……

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  • Irrelevant comment, but:

    I noticed both these symptoms too.
    I think the first is very common in London
    and is also indicative of tension between delusional sellers and the EAs.
    A house stays a couple of months with one agent at ridiculous price,
    probably gets 1 or 2 viewings and one offer at -20%,
    the seller then gets pissed off with an agent that
    “can’t achieve what the property deserves”
    and changes agent, only for the same process to start from 0.

    I do not know who will break first, so far buyers have been spineless
    and often offer 2007 prices, in London at least.
    This just delays the inevitable drop.

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  • 2. hpwatcher It’s a no win situation now.

    “The good times are over” because it has served it’s purpose. Fiat ( Bottomless Derivative) loses in exchange for real dosh.

    History really does repeat itself. How is the Argentina Team doing these days?

    Recaptcha – “Treason Globalism”

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  • Materialistc Weasle says:

    Mark @1

    When I bought my house my offer was accepted and I was awaiting completion, then estate agent rang to tell me someone had put in another bid and I needed to up my offer. I had gone in at the asking price and maxed out my mortgage so I said I needed to get back to them. As it happened I bumped into the girl I was buying off in the street (I happened to go to school with her) and said I was sorry but I didn’t think I could raise my offer – guess what ! She said she didn’t know what I was talking about and as far as she was concerned we had a done deal and she would be calling the estate agents. Question – how can that be legal ?

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  • To: mark

    The estate agents are just afraid of losing their job and pretended busy working all day.

    The street I live in used to have 3 estate agents shops but 2 have already gone in past few months.

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  • matt_the_hat says:

    or else demand will lag further and further behind potential – is this such a bad thing????

    With higher productivity surely the measure should be how much extra spare time we have instead of GDP?

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  • simon68 if they are afraid of losing their jobs why don’t they be a little more honest, rather than the total BS that comes out of their mouths, it certainly puts people off even contacting them..

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  • simon68 if they are afraid of losing their jobs why don’t they be a little more honest, rather than the total BS that comes out of their mouths, it certainly puts people off even contacting them..

    Because it’s always worth a try……You never know when a real sucker will turn up.

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  • mark – “why don’t they be a little more honest” – I’m in the middle of a case (as I type) where the EA is still poking her nose in and disrupting matters even though a deal involving 3 parties is scheduled to go through in the next few day’s – the words honesty and EA’s cant be used in my experience in the same sentence. I consider myself to be a very fair and reasonable person but when it comes to EA’s they are all as**oles.

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  • tenyearstogetmymoneyback says:

    The productivity argument is wrong. A lot of the things we buy are cheaper so less money is required.
    A TV used to cost several weeks wages. Now it is a few days.

    Also the money should only be needed for a short period.

    The sensible way things should work is Australian buys TV made in China. Chinese buy a load of Iron ore to build new factories.
    The cost of the two transactions cancel out and the money supply is back to its original Level.

    Where it all goes wrong is when UK resident buys TV made in China, Chinese can’t find anything they want to buy from UK so they
    lend the money to a UK bank. UK bank lends money to resident who buys more Chinese made goods with it. Anyone can see this
    isn’t sustainable.

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  • Yes, those old days when a TV set costs you several weeks wages and house price costs you just one year wages. By now a TV set costs you a few days wages but house price costs you 10 years wages including mortgage interests, or life time wages if it is an interest only mortgage.

    It is not Chinese who lends money to UK banks but BOE print money to pay its foreign debts or ask banks to use savers and pensioners deposits to buy government gilts.

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  • the number cruncher says:

    mat the hat @ 4

    Have you ever heard of John Hargrave and the green shirt movement – he had a whole organisation based in the valuing of free time and a version of Land Value Tax system called ‘social credit’. I have been studying his ideas and movement for a book I am writing at the moment. you might be fascinated at how popular his movement and thinking was during the 30’s – all based on valuing free time (especially when communing with nature) as the highest accomplishment of humanity and economics

    Right up Mr Wadsworth’s street

    http://en.wikipedia.org/wiki/Kibbo_Kift
    http://www.kibbokift.org/kkf.htm

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  • @NC
    Hargrave’s Greenshirts, given a largely favourable treatment by Andrew Marr in his recent TV history programme was not really a land value tax organisation but a bank reform outfit which believed that the State should wrest control of the credit-creation process from private-sector banks ,Social Credit people ,as the name implies ,believe that credit should be distributed as an unearned Income for all called National Dividends.Although MW is keen on dividends he has always insisted that banks books net -off to zero so that they are not guilty of creating new credit with every new loan.as the Social crediters insisted( I am sure he can speak for himself but he is not of the school of Silvio Gessell who saw land and money as two Commons, revenue from which should replace taxes on income etc).
    Oh well stand by for the accusations of being a hard-line Communist.

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