Debt Rattle March 1 2015

 

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  • #19550

    NPC K & W Tire Co. Rainier truck, Washington, DC 1919 • Forget All Our Other Troubles – The Russians Are Coming! (Neil Clark) • What Is Money And How
    [See the full post at: Debt Rattle March 1 2015]

    #19551
    rapier
    Participant

    A negative return on investment, a negative interest rates in other words, destroys capital. That’s how I read it anyway. If that isn’t right I would be happy to know why.

    It’s extremely odd that self identified capitalists just love the idea of at least ultra low interest rates which have a real rate of return which is negative. Of course oddness and irony abound in the world ‘free market’ capitalists. They essentially worshiped Greenspan whose many actions were the negation of markets. Happy as could be that one man was controlling markets. It’s all down the rabbit hole stuff.

    Then there is corporations including Apple borrowing money like crazy to buy their own shares. This is where a better analogy than the rabbit hole might be heads up their own asses.

    https://www.bloomberg.com/news/articles/2015-02-03/apple-raises-6-5-billion-from-bond-sale-funding-share-buybacks

    https://www.zerohedge.com/news/2015-02-28/here-reason-why-stocks-just-had-their-best-month-october-2011
    (As always ignore the comment section at ZH. With friends like these it is little wonder tha alt economics gains no traction)

    #19553
    Hotrod
    Participant

    (As always ignore the comment section at ZH. With friends like these it is little wonder tha alt economics gains no traction)
    Truer words were never spoken. ZH really attracts some “out there” fans.

    #19556
    Greenpa
    Participant

    So at the end of that lovely, laudatory article by the BBC, the writer ends by calling him “this enigmatic leader…”.

    I don’t know a single person on the planet who is LESS enigmatic. There is certainly a puzzle here; which is how these polar opposite versions of reality can co-exist; but- plain common honesty and transparency – simply cannot be enigmatic. In my world. 🙂

    Ok, different problem; not going there at the moment.

    #19566
    Dr. Diablo
    Participant

    Keen, what? This guy is the definition of a tautology. We have a goal in defining “money” so we simply add or remove elements until it fits the definition we desire. So he’s narrowed the definition to his liking: then what? What is his goal in doing so? Just to prove barter is barbarous? Or to legitimize adding a 3rd party to our every transaction, a 3rd party that cannot work for free (be definition) and needs a cut?

    Pretty strange stuff. Question of what is money is a broad, complex one, but guess what? Doesn’t matter. What matters is you can efficiently trade the fruit of your work for that of other people’s. You can use rice warehouse receipts(Japan), measures of wheat(Egypt), iron bars(Norway), woman slaves(Ireland), public bonds, private bonds, Ithaca Dollars(US), “Real Bills”(everywhere), bank notes, FRN, silver coins, or quatloos. Every one has their disadvantages, and any one will work.

    I think we might want to explore the disadvantages of having the 3rd party nosing around in our every transaction and getting paid for it with our labor, though. It might give them a wee bit of an advantage over us, methinks.

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