Fiat Currency Is A Ponzi Scheme!

You are ignoring so many variables that I don't know how you can arrive at this conclusion.

What was the growth rate of the economy between the time you made the widget and sold it? What were interest rates on simple savings accounts? CD's? What was the return on investment for mutual funds? ETF's? Specific stocks? How much did the supply of widgets increase or decrease between the time you made and sold it? How much did the demand for widgets increase or decrease between the time you made and sold it?

The only way to know if you really "lost money" is if you factor in all these variables.

Perhaps. But when you put money in the bank, you increase the amount of loans the bank can make, which spurs investments.

Moreover, savings mitigate future risk and uncertainty. If, in the future, there is an economic contraction or some other unforeseen disaster, you can draw on your savings to help you through the hard times. This contributes to the overall stability of the economy.

Putting money in the bank is productive insofar as it increases the bank's ability to make more loans to people.

Again, you are ignoring all sorts of important variables. You cannot determine if a loan is costing you "an arm and a leg" unless you look at the profitability of your investment in widgets relative to the loan repayment. And the profitability of your widget enterprise is a function of widget supply and demand, productivity, and opportunity cost. You are making a simplistic assumption that because you are paying them back in deflated money, that somehow you cannot still be profiting off of your leveraged investment in widgets.

The reason is because it is a statist shibboleth that is repeated ad nausem by establishment figures. But there is no truth to the statement, because it is a simplistic assertion that ignores a multitude of variables.

In reality, neither inflation or deflation are "good" or "bad". They are merely a representation of the underlying dynamics of supply and demand. You would have us believe that things like increased supply and productivity (both of which can cause deflation) are bad for the economy!

Yes, I'm sure it will be different this time around...

There is a reason the federal reserve is called a "central" bank.

And setting interest rates by FIAT is central planning. Moreover, they set reserve requirements by FIAT, which is also a form of central planning.

The idea that a central bank setting interest rates and reserve requirements for a literal monopoly money is not a form of central planning is the very definition of spin.

 

Where has this been a problem?

 

Those reserve requirements aren't just limits. Banks are expected to lend out to near capacity and are put on notice if they try to keep too much in in reserve.

 

Labor is indeed infinite. It restores itself via sex, new people, a person's ability to labor is restored when they sleep. Of course it's infinte. It's PEOPLE that are not.

Jeeze, let's go ahead and play dumb, shall we?

EDIT: As well, labor can also come from machines...though it takes resources as well...and if you want to get technical, people are fueled by food, which could be said to be limited, but it too is also unlimited...as is Water, but we keep pretending we have no way to clean it when there exists at least a dozen ways that I know of to take the most undrinkable toxic crap and make it into something Nestle would steal from you to bottle up and sell for 2$ a pop.

 

Feel free to sent your worthless dollars to me. I like them for sentimental reasons. I'll even pay postage.

You want to go back to a gold standard? Why would you want our currency to be controlled or manipulated by foreign gold producers like Russia, gold speculators, other nations buying and selling policies, and/or the whims of the market? There was a reason we got off the gold standard. It didn't work that great.

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A nuclear war isn't going to bring prosperity regardless of what the currency is based on.

 

The .01% have paid for and own the government outright. We will never see an end to the FED without first severing the money pipeline from the wealthy to the politicians. So long as government is being paid by the oligarchs, they do not represent the people or the best interests of the country.

 

Laughable.

Whether you're talking about mental or physical labor, both are limited by the amount of energy available for conversion, therefore, labor is not "infinite" any sense of the word. The fact that labor is renewable does not mean it is "infinite", just as renewable energy sources like solar are not "infinite", since even the sun, where all the Earth's energy comes from, has a limited amount of energy to emit and convert at any given moment. This is actually basic biology and physics, which you obviously don't understand in the slightest.

 

This time ethereal we are in hearty agreement. Labor is not infinite. If it were then no amount of crap like minimum wage could ever possibly change anything. We can expand the capacity of laborers to produce but ultimately the amount of labor that can be done is limited by the available supply of labor. And when you break that down into different fields of human endeavor it gets even more ridiculous. There're other things in this thread that just flat drive me crazy as well. And not all of them on the left. For example when you base the value of your money on the value of a given commodity then whatever happens to that commodity happens to your currency as well especially so when the rest of the world won't be bound by your silly rules. This is basically why Bretton Woods was scraped. We were getting screwed on the world stage because our currency was pegged to the ounce of gold and no one else's was.

 

Again........ this is an exceptionally good theory.

That actually might work!!!!!

 

Over the past few years I have read some rather scary accounts by some truly gifted people that warns us about an economy........ that is exactly as you said........."way slowed down!"

Near death experiencer Howard Storm was warned that a terrible depression would occur, unless we changed our ways.

You know....... this really fits in with that discussion you began on 2017 being a Jubilee year.

1867 would also be one of those Jubilee years............. America and Canada at that time did not honor the principle of Jubilee as we should have...… and 56,000 business owners paid the price! The money supply was decreased..... and they soon went bankrupt.

http://www.michaeljournal.org/plenty49.htm