Economic Discussion
Cross post of my comment from theferrett
Background before I start: Watch the Money Masters, Read Mish's Global Economic Analysis. (google video and google blog respectively.)
Way to fix the US: Abolish the Fed. Money Masters says how to do it gently and easily, the difficulty is that this a political not an economic issue.
Way to make a decent system: Circulate debt free currency based on the value of economic resources. I like real estate backed currency (not mortgage backed, but real estate backed and there is a world of difference) which is then *never loaned* only invested for a % of returns. Standardize the contracts, using bidirectional rating systems.
In terms of socialism, I have an opinion that differs too much from both camps to be phrased in terms of either. #1 Centralize certain infrastructure: water purification, electricity, telecommunications access, health care databases #2 Only provide social support for cost effective behaviors (Cancer from smoking? Too bad. Broken arm? Here's a $20 fix and we will pick up the bill.) Note this doesn't mean 'cheap' it means that increase in money paid means you need an increase in effectiveness. We tend to pay more for less in many areas, especially cancer treatment.
Now I do believe bank runs over the entire economy is bad. I have only met a few people who actually understand what money is, and one of my expertise is working as a money trader. We're supposed to understand this, and most of my cohorts don't know what $1 means. First of all, money is worth what you buy with it. Secondly, how money is released changes its availability which changes how it is used. On a fundamental level, the US Dollar is invented through mortgages. That pays construction workers, contractors, real estate agents, mortgage brokers, etc. The Fed determines how much money is available, the prime banks get first swing and the secondary banks push it into society. The US CAN NOT function if we have trade balance, the USD is the main export.
There are going to be 3 global economies: Chinese Yuan, Eurodollar, US Dollar. That spells YES in money btw (good meme!) The US has enjoyed a mandated monopoly on intl commerce since the Bretton-Woods agreement after WW2. That has change. The American economy will go through drastic and long term changes due to a breaking of the monopoly. Europe is now the #1 economy in the world (exchange rate * previous GDP) and the world will continue to change. BANKS SHOULD FAIL. HEDGE FUNDS SHOULD FAIL. The coming 'accounting reconciliation' will be at least $1 Trillion. I'm not paying for it.
Background before I start: Watch the Money Masters, Read Mish's Global Economic Analysis. (google video and google blog respectively.)
Way to fix the US: Abolish the Fed. Money Masters says how to do it gently and easily, the difficulty is that this a political not an economic issue.
Way to make a decent system: Circulate debt free currency based on the value of economic resources. I like real estate backed currency (not mortgage backed, but real estate backed and there is a world of difference) which is then *never loaned* only invested for a % of returns. Standardize the contracts, using bidirectional rating systems.
In terms of socialism, I have an opinion that differs too much from both camps to be phrased in terms of either. #1 Centralize certain infrastructure: water purification, electricity, telecommunications access, health care databases #2 Only provide social support for cost effective behaviors (Cancer from smoking? Too bad. Broken arm? Here's a $20 fix and we will pick up the bill.) Note this doesn't mean 'cheap' it means that increase in money paid means you need an increase in effectiveness. We tend to pay more for less in many areas, especially cancer treatment.
Now I do believe bank runs over the entire economy is bad. I have only met a few people who actually understand what money is, and one of my expertise is working as a money trader. We're supposed to understand this, and most of my cohorts don't know what $1 means. First of all, money is worth what you buy with it. Secondly, how money is released changes its availability which changes how it is used. On a fundamental level, the US Dollar is invented through mortgages. That pays construction workers, contractors, real estate agents, mortgage brokers, etc. The Fed determines how much money is available, the prime banks get first swing and the secondary banks push it into society. The US CAN NOT function if we have trade balance, the USD is the main export.
There are going to be 3 global economies: Chinese Yuan, Eurodollar, US Dollar. That spells YES in money btw (good meme!) The US has enjoyed a mandated monopoly on intl commerce since the Bretton-Woods agreement after WW2. That has change. The American economy will go through drastic and long term changes due to a breaking of the monopoly. Europe is now the #1 economy in the world (exchange rate * previous GDP) and the world will continue to change. BANKS SHOULD FAIL. HEDGE FUNDS SHOULD FAIL. The coming 'accounting reconciliation' will be at least $1 Trillion. I'm not paying for it.