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Government's Goal: Total Economic Collapse?


John E

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I just have two points to make.

1. The Great Depression happened on the gold standard.

2. The Constitution gives Congress the power "To coin Money, regulate the Value thereof." Printing money en masse is regulating the value of money. Nowhere in the Constitution does it say our money has to be worth something.

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My comment was meant to give evidence that the gold standard is not a fix all for economic problems. It was not my intention to draw a parallel between two economic downturns.

My main argument against the gold standard is that it ties the hands of a central bank when all other banks are allowed to leverage their assets however they see fit. The Federal Reserve was/is designed to protect against a bank run but it can't do that if it's hands are tied by gold. Unless every bank is regulated to the gold standard and not allowed to leverage 10 to 1 (just an example), the bank run protection is DOA. And good luck convincing an international bank with 30 billion dollars of obligations to actually have 30 billion dollars constantly on hand. Money is a liability on that scale, especially to a publicly traded bank who's shareholders drool at the thought of 30 billion sitting untouched ready to stuff their bank accounts.

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I just have two points to make.

1. The Great Depression happened on the gold standard.

2. The Constitution gives Congress the power "To coin Money, regulate the Value thereof." Printing money en masse is regulating the value of money. Nowhere in the Constitution does it say our money has to be worth something.

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The Fed controls trillions of dollars yet it is not accountable to any elected official. it is stacked with members from the financial community who profit from the decisions it makes. To me this is a bit too incestuous and again, we only have to look at the excesses at the banks to see why The Fed, as it exists, is a broken system. Congress should and for that matter must have the right to audit the fed, and have the power to appoint it's directors. Not the banks.
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The gold standard would not of prevented Lehman Brothers from leveraging 32 to 1 (just an example). Lehman was not a central bank and would not of been tied to the gold standard. As I said in my last post, the gold standard would have to be applied to all banks in order to prevent financial meltdown as people flood banks looking to withdraw deposits.

Just a hypothetical: how could a central bank with 1 trillion dollars possibly inject capital into a financial system with leveraged obligations reaching into the quadrillion range?

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Well they sure did "sneak" thru...at 3:00a.m. that morning....but how would we ever know about this jaw-dropper tax?? The media has been much too enamored with Michael Jackson...perfect time to sneak this in....it's coming a time they will TAX us on our farts for the methane!
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  • 3 weeks later...

I saw this when it was on TV. Spitzer is one of the few that has it right. One of the very few. If Obama is remembered for having any failures, it won't be for health care, it won't be for how he handled foreign policy, it won't be for anything except for how how he sold out to Wall Street. What needs to be done to this system, isn't being done. You don't fix an economy by loading down your administration with people from the very club that allowed the collapse to happen in the first place. For the record, I voted for Obama.

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I saw this when it was on TV. Spitzer is one of the few that has it right. One of the very few. If Obama is remembered for having any failures, it won't be for health care, it won't be for how he handled foreign policy, it won't be for anything except for how how he sold out to Wall Street. What needs to be done to this system, isn't being done. You don't fix an economy by loading down your administration with people from the very club that allowed the collapse to happen in the first place. For the record, I voted for Obama.
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..... This "system" is fine. We don't need a new system "socialism". Our economic system was only the avenue in which the root reason flared up through. What needs to be fixed is America's morals. Greed in-particular. It takes a society of greedy people to cause a collapse like this. A society that operates under debt, individually and nationally, is ripe for collapse.
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A contradiction for sure. I find that people throw out the socialism word without having ever looked into what it means. Yet at the same time point out that we should be a free-market system, capitalistic, etc. just throw out the greedy people. Well, capitalism is the system of greed. Greed is the pursuit of money, wealth and power. Without it, you simply can't have capitalism. Capitalism is the system of debt. Without the ability to raise capital, ie debt, modern capitalism can't exist. Morality has nothing to do with it. Morals are a component of Socialism, not Capitalism.

So if it is greedy people and debt that caused the collapse, then that means some sort of government control must be brought in to contain it. i.e. You move from capitalism towards socialism.

The fact of the matter is the USA is already socialist it's the degree now that we are talking about.

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..... But your not a greedy person, are you? Do you consider yourself as a Nobel person? Do you work hard everyday for a paycheck that provides for your family? To you wish to excel? Are you proud of the accomplishments and decisions you have made for yourself and your family? Do you like being in control of your life. Now, would you trust D.C. politics for your well-being? Would you trust politics to make decisions for you? Would you trust our politicians, that are universally adored, to take care of your family? When I was a kid, the only incentive for me to not wet the bed was a reward of candy. It's human nature. There is no shame in that. Rewards for a job well done doesn't mean greed, it means progress. Odd example, but I get my point across.
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  • 4 weeks later...

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