Lennart,
Money is used to facilitate the exchange of good & services; it needn't
have any intrinsic value. The money supply needs to be balanced &
distributed to foster it use to balance distribution of these goods &
services within the economy. Hence the need for regulation.
All those derivatives & fancy wall street products were effectively
"unregulated money" in a huge shadow economy & when they suddenly went
away that money had to be replaced which the Fed has been doing; although
not perfectly as the financial sector has a lot of power & influence in
our political system.
I believe your faith in a laissez faire solution is naive.
Ron
--On Wednesday, August 12, 2015 7:25 PM -0800 Lennart Thornros
<lenn...@thornros.com> wrote:
Eric and Jed,
Why do we need someone to control the amount of money in circulation?
Why do we need to split it up in pieces? I guess it is good for China
they can now fix their economy by letting others pay for it. This
nationalistic way of solving problems will go away. Just let it go
natural.
I do not think we need a financial nurse checking out for us.
Freedom is a god thing liberalism does stand for that from the beginning
but now it has become to mean socialism. Is that why everybody like to
have more nursing? Cannot distinguish between liberalism and socialism:)
Big difference.
Best Regards ,
Lennart Thornros
www.StrategicLeadershipSac.com
lenn...@thornros.com
+1 916 436 1899
202 Granite Park Court, Lincoln CA 95648
"Productivity is never an accident. It is always the result of a
commitment to excellence, intelligent planning, and focused effort."
PJM
On Wed, Aug 12, 2015 at 7:01 PM, Eric Walker <eric.wal...@gmail.com>
wrote:
On Wed, Aug 5, 2015 at 2:11 PM, Jed Rothwell <jedrothw...@gmail.com>
wrote:
I know little about economics, but limiting the amount of money based on
the amount gold we have -- or the number of bitcoins -- seems like utter
lunacy to me. It never worked in the past. There are two reasons:
1. The money supply has to increase when there is more economic activity
and more people, or you get severe deflation. This happened in the U.S.
and other countries on the gold standard. Severe deflation is a bad
thing.
This is the reason I've never understood the appeal of gold or
bitcoin. The urge to take the control of the amount of money in
circulation out of the hands of central banks seems to disregard the
danger of deflation.
Eric
