|Last Updated: Mar 25th, 2013 - 16:46:15
Thought for the Day
For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.
The Bible, Timothy 6:10 (King James Version).
So it is the love of money that is a problem - not money itself. But in those days they never conceived of paper money. They used real gold and silver money. These days our problem is that the money we are using is being devalued by 10% to 15% each year as the government prints more paper money. Just like every other government in the world. I think Zimbabwe is now printing at a rate of inflation around 66,000% and creating a major disaster for themselves.
So it may not be love of money that is getting us into trouble - just love of power causing lots of printing of lots of paper money.
Feb 29, 2008, 11:00
Money, Banking, and the Federal Reserve: the Complete Transcript
This is the transcript of a Youtube video (http://www.youtube.com/watch?v=iYZM58dulPE) tracing the history of money, banking and the Federal reserve in the USA. It tells how and when the US went on and off the gold standard and traces events from the founding of the new country through to 1996.
Those of you who like a good conspiracy - read this!
Those of you who seek world peace - read how governments pay for their wars with paper money. No paper money - no war! Well, not big expensive ones.
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Feb 24, 2008, 19:28
Worst Financial Crisis Since 1931? German State-Owned Banks on Verge of Collapse
After the boom comes the crash. So says Ludwig von Mises.
This article (in two parts) was printed in the German media and translated to English for our edification.
State owned enterprises - banks in this case - are liable to suffer from moral hazard. If the State will guarantee our survival we don't have to be so particular with our money.
German state owned banks are in deep trouble. Remember our own Bank of New Zealand and how much that cost you and me as taxpayers to bail out in the aftermath of the 1987 boom.
Very interesting reading. The Credit Crunch is spreading.
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Feb 24, 2008, 12:53
Government The Destroyer, Part II
The interesting thing is that the US government is very concerned that there is a recession coming and they are now pulling out all stops to "fix" it.
Their only solution is to print more money and to distribute it to the people so they will spend it and keep the economy ticking over. If that really worked as a way of running the economy then why don't we adopt it as standard procedure and then none of us will have to go to work any more!
If the Chinese wish to demolish the Amercian way of life they will soon have an opportunity. As the Yankee dollar comes under pressure (because the Fed is printing too many) there is a rising pressure to sell oil in something other than US dollars. The Russians favour rubles, Iran is now using its own currency, and the Arab states are now addressing the question.
If the Chinese should tip the balance some time in the future then the US dollar will cease to be the world currency and all the US dollars that are spread around the world will head back to the USA. Given that there are currently more US dollars outside the States than inside this will produce a big inflation inside the US and probably destroy the US currency.
Suppose the Arabs decide that they wish to be paid in real money - gold for instance. What then? The Chinese are currently mining frantically for gold (they are currently training 50,000 geology students) and have recently opened a retail gold exchange in Shanghai.
The world gets more and more interesting every day!
Feb 22, 2008, 12:59
Nowhere To Hide
The dollar has been falling relative to other currencies for quite a few years now...but Nathan Lewis thinks that this process could be coming to an end. Read on...
Feb 20, 2008, 19:23
Let's Legalize Competing Currencies
One of the foundation stones of prosperity is sound money. The problem with paper money is that banks can print more than they should.
Politicians need to get elected and a common approach these days is to promise free money to citizens that might vote for that. Ask any student able to vote in the last election. Mind you Labour are not alone in this modus operandi. Muldoon and Rowling engaged in it in the 1970s. I remember Bill Rowling offering $100 to anyone who had a baby that year. And of course we can go back to the bread and circuses of ancient Rome for precedent if we wish.
With paper money it is easier than gold coins to debase the currency and defraud the citizens. So politicians and central banks work with commercial banks to goose the money supply and everyone feels wealthy - for a while.
So what is sound money and how do we get it?
Ron Paul, who raised $6,000,000 in one day over the internet to help fund his campaign for President of the USA, explains his ideas in more detail. Ron is a medical doctor and a member of congress so he is no mug!
Feb 17, 2008, 13:28