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Originally Posted by TheDoc
The facts surrounding the crashes do not support your theories just like crashes before the Fed Reserve don't support your theory.
The big crash, people borrowed money THEN invested the money on inflated stocks. The market had more stocks sold on loan than the entire eco had in money in supply. When you buy inflated stocks with fake borrowed money, chances are it's going to fail, even more so when we didn't have the money to pay out on it.
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The Fed created a bubble by flooding the market with money. It happened in the 20's and crash. It happened with the S&L scandle and crash. It happened with the dotcom bubble and crash. It happened with the real estate bubble and crash.. It's happening with the bailout bubble and it's going to crash..
Quote:
Originally Posted by TheDoc
Heck I think the quality of life greatly improved 'after' the creation of the Fed Reserve, fake or not.
Nothing from prison planet is fresh off the press...
But let's play the game anyway. When a raw material is first found and some products created - at that point they first paid for. That's the "real value" - if you're shoe really cost $10 to make - that's it's "real value."
However because we have a recycling money supply (amount of money makes no difference) "WE the People" increase or decrease the value of the goods based on demand. Money is another good, and we effect it the same way however it's value is based on our ability to keep producing wealth (ie: moving money).
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I think "intrinsic value" is the term you're looking for.
I exchange my labor for my needs in exchange for someone else's. Money isn't a "good" it's a mode of exchange. It's "value" is manipulted to serve only a few.. The "few," bankers create nothing of intrinsic value to society and charge us an interest for doing so and make me, my children and their children forever endebted slave to their system.. With the help of Washington..
Quote:
Originally Posted by TheDoc
If you inject a huge amount of money into our system, it will simple cycle itself out because we as a society and world economy repurchase the same already paid for raw products, over and over again - much done on debt. It keeps the cycle of money moving, when it stops moving - then you have problems.
Which is why they injected more money into the eco after every major crash. They start the money flow again and the repurchase cycle starts back up and the eco fires over, jobs get created, etc.
I agree a 100 times over with ya it's nasty ass system. However the Fed Reserve and it's ability to allow you to create wealth is far beyond anything we could have ever had 100 years ago. So knocking it rather than working with it, is.... crazy.
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In both the 1929 crash and the '08 crash the money supply was decreased which caused the crashes.. If there's not enough money to go around then theres not enough money for people to earn a living to pay their bills (mostly interest encrude debt). A crash.. Foreclosures, job losses, etc follow.. Which is what we have now..
Working with a system that only truly benefits a few is.. crazy.. Working with a system that enslaves you, your children, and their children to debt is.. crazy..