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A simple solution to the debt and the economy.

Discussion in 'Economics, Business, and Taxes' started by Days, Jun 10, 2017.

  1. Days

    Days Governor

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    I've become aware of most everything through the internet for the past 15 years.

    Is your source totaling up all real estate value, corporate value, stock value, bond value, in every market and privately held? Precious metal value, information value, intellectual property, government holdings and endeavors, central bank holdings and capabilities, all debts, assets, and insurance? What about the derivative trade? The total money supply in dollars is a lot more than just the amount of money in circulation...

    The primary reason I chose to tweak the bond redemption - other than the glaring mistake of retiring a synthetic debt with the tax base - was because the redemption payout goes totally into asset rserve for the banks to lend against. (as do the bonds) The financial markets are always shifting positions and although that trade does set up for main street circulation, it is all in the back ground, it never affects the price of milk.
     
  2. Arkady

    Arkady The Departed

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    No. It would be odd to total all of those up, for these purposes, since many of those are assets, rather than dollars. Assets can be valued in dollars, or any other currency, but aren't inherently linked to them. For example, I can agree to buy your piece of property in the US for Russian Rubles, if that's what we agree to. That property is no more a measure of the number of dollars in existence than the number of Rubles. Bonds are different, in that they're inherently valued in dollars, because the asset is the right to be paid a specified number of dollars at a specified time. But stocks, derivatives, etc., are more like real estate. To the point we were discussing, non-currency assets can't reasonably be considered as adding to the base for purposes of determining how much a new influx of currency would alter the value of existing currency. If we did the math your way, there should never have been the possibility of past inflation, because the total value of all assets that might be valued in dollars has always dwarfed the amount of currency. Yet past periods of high inflation did, demonstrably happen.
     
  3. Days

    Days Governor

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    If the bond redemption is being added to the asset reserve money pool, then you need to measure it against the asset reserve money pool; that is, after all, what it is inflating.
     
    Last edited: Jun 14, 2017

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