Posted on 03/21/2012 4:22:45 PM PDT by appeal2
Ron Hera of Heraresearch.com joined us today to share his latest opinions on why paper money is often equivalent to theft. While there are many things wrong with fiat money, the main thing is it enables government to easily pick winners and losers. If you want to take advantage of an opportunity and you're part of the in-group, all you need to do is contact your connections, get a government license or a cheap government loan/subsidy and you're in. If you're an insolvent banker who doesn't know how you're ever going to get all those mortgages paid off, you call your friendly Fed and the next thing you know, you've gotten a generous bailout and the bonuses are flowing.
Obviously such inequities increase resentment among the not-so-connected group. This group is being fleeced for the benefit of the elites and cons, and they want justice. Judging from the aftermath of the financial collapse, this group is never going to get vindication because the elites look after each other and keep one another from being held accountable. Therefore, it becomes necessary for the average citizen to invest in places where he/she will not be subject to government confiscation. Ron Hera is a master at this fine art of evasive investing. This was a far ranging but extremely relevant discussion.
The love of money is the root of all evil.
Not the money. The Lust for it.
Nonsense. The fiat system is evil because it permits politicians to steal the wealth of the people by printing more. It, by design, is automatically rigged.
The love of money is the root of all evil.
Only politicians love fiat money. Through it, they can steal and spend as much as they want. Now, that's evil.
“A false weight is an abomination to the Lord”.
Currency which has a value backed by no tangible asset but only good faith and is constantly being manipulated by the money-changers of today represents and evil system - not the currency itself per se, but the system of manipulated value.
How can wealth/value be created in a finite system?
Fiat.
How can wealth/value be created in a finite system?
Wealth does not consist in money and wealth creation does not depend on money creation. Wealth consists in the goods an economy produces and, with capital reinvestment, there is no limit to how many goods can be produced.
A finite money supply need not hamper that process at all. As more goods are produced, their price will drop. This will not be a problem for producers because their costs will drop as well.
We are so used to monetary inflation, that it's hard to imagine that there have been extremely prosperous periods where the "finite system" of the classical gold standard was in effect. 1873 to 1913 is probably the most recent.
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