Eeeeehhh…labor value of money??? Not buying that. A guy with a shovel digs a ditch. A guy with a backhoe digs a ditch. Is their labor value equal?? Not really.

Guy drives backhoe. Another guy repairs backhoe. Labor equal. No.

I’m sure you get that so using labor as a principal just seems wrong.

And no I’m not a gold bug. Guess I’m a basket goods value equivalence money value person. Big Macs seem to be cited as being relevant to the general value of a currency.

Since the first big bank bail out some reasonable numbers for money given to the banks is $40 trillion. Where’s my, and every other Americans, 1% interest $114,285.71 loan??? All I got was the payment and none of the principal. Weimerica.

That is all that anything is ever backed by.

Capital by itself is just inert. Or worse than inert, because left alone it degrades and disintegrates and its constituent minerals return to the earth.

This backing finds its legible expression in the futures market of the extracted value of the sweat of your brow, commonly known as the stock market.

The fact that the revenue-generating asset that is the double-entry money system can never find satisfaction in the present (but only in the future) is the most brilliant aspect of its design. This feature systematically guarantees that the ownership of real assets will monotonously centralize, accruing into the hands of the economy, which is the true purpose of the system.

If the system were not shaky and subject to vast gyrations, there would be no peril, and if there were no peril, there would be no opportunity.

Besides, there is a point beyond which additional wealth has no real meaning. The natural human response upon surpassing this point is to reallocate time from labor to leisure. In making it so easy to produce so much, industrialization “blew up” the natural scarcity of the system, causing the phenomenon that so terrified the early-20th-century capitalists: overproduction.

The solution to this problem was to raise prices, slash wages, and undertake to demote the citizenry from owners to renters of property.

And that is why the average person is poorer than his grandfather, even as the wealth in the system has multiplied dozens of times.

Oh I get that. After all they can borrow money to buy a debt instrument creating…more money but my point was it had no backing. It certainly not like buying pork belly with cash. By having no “real” backing but debt piled on debt it makes the whole financial system very shaky and subject to vast gyrations and peril.

What really, really pisses me off is these guys can conjure cash from nothing and still invest it so poorly that they are constantly having to get more because lest they go bankrupt. They’re not masters of the universe, they are masters of the campaign funds and blackmail.

Sam, you are more right than you are not, but I must tell you that the money is absolutely real according to the most refined understanding of what constitutes “real money”. That is, the value of the money (and of the derivatives, which are simply money squared) is predicated upon the profit and power that accrue to the owners the economy of the financial system, on an annual basis. (This is natural, because the value of all revenue-producing assets is assessed in this way.) This profit is most subtilely extracted (or, as you put it, skimmed) from the neo-homogeneous masses of culturally defiled and sexually degenerate laborers; and because dollars are created out of debt, which comes ex nihilo, the money is backed by labor, or, more properly, the value it extracts:

And so the ellipse curves back in upon itself in flawless form.

Circles within circles!

https://pbs.twimg.com/media/EUUMZtrX0AETq7c?format=jpg

I’ll even tell you how it’s possible: debt is money == money is debt…”

If you look at the derivatives and then the amount of money available to purchase the derivatives you see fairly quickly there’s not enough. They can not be backed by real money. So most all the derivatives are just fanciful debt instruments with no backing at all.

One big Jewified scam. I don’t think they can resist. Just one more shave off the side of the coin. One more derivative. Just that last squeeze of profit out of anything except the last one never comes. It’s always just one big unending scam until the people have had enough and expel them. Everything they touch turns to shit.

Like slightly smarter Negros. I love to watch those videos where they put tampered bicycles in Negroland. They can’t help it. If it’s not tied down they immediately steal it. You can even see the look of joy on their faces that they stole something…right before the bicycle comes apart or the seat blows up or whatever scheme the pranksters have put place to stop them.

https://www.youtube.com/watch?v=NX9wHZSRTl0

http://www.philadelphiafed.org/publications/economic-education/ben-franklin-and-paper-money-economy.pdf

is an excellent paper based on a lecture given by Professor Farley Grubb on March 30, 2006, at the Federal Reserve Bank of Philadelphia. It’s very good and not too long.

A U.S. government printing press…”

That’s not true. The government can not, in the present system, print any money without incurring debt to a private banking entity, the FED, equal to the principal plus interest. In turn the private banking entity, FED, conjures money from thin air and gives us nothing in return.

A side effect of this is that the FED’s friends get first pass a funds created from thin air at close to zero interest rates. Hell right now they are negative. A little thought will tell you that having access to this level of cash at little to no interest means you can buy all the productive parts of industry and pay back the loans with the profits from the firms you take over. This was done repeatedly with a big push during the 1980′s hostile take overs.

Harry Jones says,”…The economy will bounce back when it sees fit. Always has, always will. Federal monetary policy is nothing more than a large nuisance…”

Not so. In the past there have been numerous times where the amount of cash in the system was too little to entertain growth. Maybe you could say this was wrong but there’s no way that you can argue that too much cash could not cause inflation so the opposite, not enough, causes “real” interest rates to rise drastically. This crunch means no expansion of loans to buy factories, houses or whatever. Ideally the amount of cash in the system would balance the amount of productive work going on.

In the great depression the FED drastically raised the cost of getting loans. I don’t know if it was deliberate or not but that helped cause the depression.

A simple question. What if the government provided low or no interest loans to every citizen of the same quantity as that have to the banks in the past few decades. People would be WAY better off with housing cost much lower. We would also have a lot more houses because contractors could build houses with low to no interest but…you won’t see that.

Our money supply system is stupid. A child can see it’s stupid. All money is created as debt so to pay off the interest you have to have more money…created with more debt. Simple arithmetic will show you that the interest portion will grow to unsustainable levels as the debt compounds. Maybe this is the reason we are suffering so. Mass interest and debt accumulation. The people in control of this FED and other central bank owners are allowed to create any amount of currency while sticking us with the debt. Nice racket if you can get it.

There’s another way of thinking about this. If all the goods and services in the economy were backed or shadowed by an equivalent amount of currency we would have a situation were there would be debt but it would be owed to no one in particular. The cash would be a direct substitute for goods and services. Benjamin Franklin wrote about the currency in Pennsylvania that worked like this but based on land. It worked very well and provided prosperity for the whole community. Of course when the Bank of England found out about it the King made them stop causing the whole community to crash into a downward spiral. Possibly being one of the reasons for the revolution.

http://www.philadelphiafed.org/publications/economic-education/ben-franklin-and-paper-money-economy.pdf

There’s a guy who ran for President, Scott Smith, he had some damn interesting ideas. Very good reading for anyone interested in the economy, cash balances, the FED and the economy.Banks under his rules would just get a fee for initiating a loan. He would pay off the debt in 5 years. All his taxes would come from “transactions”. Sort of like sales taxes but on all transactions. They would also be very small but multiplied by the VAST number of transactions it would come to a whopping big number.

Let’s look at the numbers he quotes.

Payrolls total $15 trillion.
Not much for filling a $4 trillion federal spending.

The base for what he calls payments, (transactions), is 3,600 Trillion. Big difference. So using this big difference he would only take a tax rate of just 1/8 of a percent.

He has a load of good ideas. He’s also not some nut, He’s the one who INVENTED Mortgage Backed Securities but his actually worked because he used verified income based loans and out of this calculated the failure rate and put up extra security to take account for it. Mortgage Backed Securities were not a bad idea. It was an excellent idea until the Jews got a hold of them and like every damn thing they touch they turned to shit. They turn everything they touch to shit.

His site is gone but it’s on the internet archive. It’s good reading for people who like to look at stuff like BIG different ideas for banking,. taxes, etc. Everyone else will be bored to death but most are info graph type stuff you can easily breeze through.

https://web.archive.org/web/20160126102250/http://www.scottsmith2016.com/#scott-smith-home-1

Look, we both know that Kirk is a smart dude, and we both know that you’re smarter than Kirk, and probably substantially more analytical, so you’re not going to step on your own dick like he would if he met me in the field of battle.

But come on. You have absolutely no idea what you’re talking about.

If you have the money printer, you literally-not-figuratively own the economy. It is your creature.

He who has the money makes the rules.

Let me show you something. I want you to explain how this is physically possible. I suspect that you will find it somewhere between difficult and impossible, inclusive, to comprehend according to your mental model of how the world works — a model that is completely, utterly, cataclysmically wrong.

Are you ready?

https://pbs.twimg.com/media/EUUMZtrX0AETq7c?format=jpg

I’ll even tell you how it’s possible: debt is money == money is debt.

Now I want you to type out what that means in practical terms.

This is a cognitive assessment.