Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
Page:  « First  ‹ Previous  1 2 3 (3 total)
photo
HUFFPOST SUPER USER
MassWG
05:32 PM on 03/21/2013
"Ayn Rand probably didn't think any of this through..."

Or perhaps it is the author not fully thinking it through. What we have right now is not a failure of true market capitalism, but a failure of rigged finance capitalism, where making goods and services is secondary to making speculative gains in asset markets. This is rooted in the massive credit expansion of central banking and fractional-reserve lending and the global fiat dollar standard, with the resulting inflationary effects that transfer wealth upward.

Few economists discuss the fact that the result of increased productivity should be a natural deflationary tendency: a level of goods growing faster than credit/money means lower consumer prices. The Fed counteracts this by expanding credit and driving prices up to "stable" levels - and thus our huge levels of public and private debt. High debt levels are a drag on true economic growth.

Costs of living should be going down as standards of living go up. Instead, the reverse is happening.

The reason globalization has ravaged this country is because we do not have to produce and export to pay for imports - we simply create more dollars, the global reserve currency, by creating more debt. Without the fiat dollar standard, we could never run endless massive trade deficits - we would run out of money, and be forced to export.
photo
HUFFPOST SUPER USER
peasent
11:10 PM on 03/21/2013
Few economists discuss the fact that the result of increased productivity should be a natural deflationary tendency: a level of goods growing faster than credit/money means lower consumer prices.

Exactly. The savings was never passed along to consumers. The difference went into the pockets of the executives. The prices never fell. The price continued to rise and the corporations pocketed the difference. Credit hid it.
photo
HUFFPOST SUPER USER
MassWG
11:44 AM on 03/22/2013
How do you know inflation didn't hide it? If prices were decreasing by 10%, and the Fed created inflation at 10%, the two would offset and you would have stable prices -- a mandate of the Fed.

This is what happened in the 1920s. There was massive inflation, but also great increases in productivity and output. The former, putting upward pressure on consumer prices, counteracted the latter, that put downward pressure in consumer prices. The result was stable prices... except asset prices, which bubbled and burst.

Upon the burst, it was realized that credit/debt had expanded much more quickly than the supply of gold available to repay debt. (If we reach that point, producing the supply of dollars needed to offset deft-deflation, and pay off loans, will result in hyperinflation).

By keeping falling prices "stable" via monetary inflation, the Fed steals purchasing power from the poor and transfers it to the rich.
HUFFPOST SUPER USER
ruolivert
12:22 PM on 03/22/2013
Prices did fall but it caused the Great Depression as so much was being produced there was no way it could all be consumed. Capitalism creates the seeds of its own crisis by finding new way to be more productive despite the fact that the material needs for human survival have not changed. Once you reach a point of productivity that outpaces the ability for normal human consumption you hvae to find a way to destroy capital or use it in unproductive means in order to justify the continuation of the system.
wsdave
Abusive or Insulting? I won't be responding.
04:15 AM on 03/22/2013
"Or perhaps it is the author not fully thinking it through. What we have right now is not a failure of true market capitalism, but a failure of rigged finance capitalism, where making goods and services is secondary to making speculative gains in asset markets."

WINNER!
This user has chosen to opt out of the Badges program
photo
dadw5boys
Disabled Vietnam Vet
05:09 PM on 03/21/2013
How many years would it take Congress to revisit all the Anti -Competition Laws and Barrier to Entry Laws they have passed to protect existing businesses from Competition ? Many of those laws in effect grandfather in the use of toxic chemicals and save the Corporations billions when they do not have to meet things like Air Quality Standards or Water discharge standards.
Open up the market place to real competition and lets really have that " Free Trade " the Republican minions parrot without even understanding that Free Trade does not exist even Bankers expect Barrier to Enter Laws to protect the loans they make to businesses from a competitor.
This user has chosen to opt out of the Badges program
photo
clearasmud
Needed... One Real Democrat President
03:31 AM on 03/22/2013
The House just passed a Bill destroying all the controls the Frank-Dodd Bill was intended to create, controls on Derivatives. We are back to square one with even Bernanke saying the WS Banks are too big to fail. This is insane.
This user has chosen to opt out of the Badges program
photo
dadw5boys
Disabled Vietnam Vet
05:02 PM on 03/21/2013
When there is not direction they start tearing things apart. I call it Destructive Predatory Capitalism. The more they destory in the economy the more people will step up and try to repair the damage and that is where they make big buck controling what is rebuilt and who gets to do the rebuilding.
They flooded the USA with illegals to have more people to sell thier products too and who would work cheaper lowering the wages across the board.
Until some product comes along that draw the attention of big money this contraction and destruction will keep growing around the world at a faster pace. Weapons and Housing can not be the only base for the whole U.S. Economy
This user has chosen to opt out of the Badges program
photo
clearasmud
Needed... One Real Democrat President
03:28 AM on 03/22/2013
" Weapons and Housing can not be the only base for the whole U.S. Economy."

And therein lies the rub.
05:00 PM on 03/21/2013
The 1% will play "divide and conquer" to the extent that they have divided us all as far as we can go, only to discover that what they were really playing was divide and destroy. They'll ultimately go down along with all of the rest of us, but that is little consolation.

In my opinion, we need a world leader before we can hope to successfully fashion a world government, and there appear to be none on the horizon.