Posted tagged ‘Electronically Printed Counterfeit Money’

Must Reads For The Week 1/9/16

January 9, 2016

GOVERNMENT COUNTERFEITING, ALTHOUGH LEGAL, IS STILL THEFT

Keynesian Economics 101, (In Four Simple Lessons), at zerohedge.com. Print and spend money to stimulate the economy.

The Government Must Stop Printing Phoney Money, by Richard Ebeling, at epictimes.com. This is an in-depth article about the Government electronically printing counterfeit money. Trying to take away the States monopoly on money printing through the political process is a daunting task. Put your thinking cap on for this one.

The Rise Of Independent (non-state) Crypto-Currencies, by Charles Hugh Smith, at oftwominds.com. This is how the States money printing monopoly will be taken down. When I first heard of Bitcoin, my first thought was Bitcoin, or some other crypto-currency, could lead to money being restored as a product of the free market. The States monopoly of money printing could be broken just like the taxi cartels monopoly was broken by an app on a phone (Uber).

Are We Headed For Another Bust?, by Frank Shostak, at mises.org. The Feds intervention in the free market by its policy of below market interest rates and electronically printing counterfeit money will eventually be corrected by economic forces that are always in play. The bust is correcting the Fed induced boom.

GRAB YOUR GUNS!

The Constitution, The President, And Guns, by Andrew P. Nepolitano, at creators.com. The opposition party hasn’t stood up to the power grabs by our President over the last 7 years. Why would anyone think the Presidents last year in office won’t be like the last 7 years on steroids?

Obama’s Gun Control Order: Dictatorial And It Won’t Work, by John Lott, at nationalreview.com. I’d have more respect for the President if he would just come out and say he wants to repeal the second amendment.

Chart Of The Day: More Guns Less Gun Violence Between 1993 And 2013, by Mark J. Perry, at carpediemblog. Data shows that gun violence has gone down as firearm ownership has increased. Causation or correlation?

Showman And Chief, by Thomas Sowell, at jewishworldreview.com. Thomas Sowell looks at the political theater of the Presidents press conference concerning gun control.

President Obama Tears Up While Discussing His Action To Curb Gun Violence. If you read the article by Thomas Sowell above: you have to ask yourself if the tears are real or just part of the show?

Just remember the Presidents standard operating proceedure: “You Never Let A Serious Crisis Go To Waste“.

JUST FOR LAUGHS

Hillary Can’t Explain The Difference Between Democrats And Socialists.

Let me see if I can help. A Democrat is a socialist who won’t admit it. She said she’s a “progressive” Democrat. A progressive Democrat, or a progressive Republican, is socialist central planner.

Dexter Manley Has Some Thoughts About Black Quarterbacks.

A couple of observations.  1) Watch the white guy in the video. He knows this is funny but he tries to hide his laughter by putting his head down. 2) Dexter Manley apologized for saying this. Are we so worried about offending people that we can’t even make jokes about ourselves or laugh at jokes like these. Isn’t it about time to drive a stake through the heart of political correctness?

 

 

 

 

 

Milton Friedman Wins The Democrat Debate Against Hillary Clinton And Bernie Sanders

October 15, 2015

The first Democrat debate between Bernie Sanders and Hillary Clinton seemed like a debate between Karl Marx and Fidel Castro. Sanders truly believes that Marxist socialism will work, and Hillary just uses the Marxist rhetoric to win a position of power. The real winner in the debate was Milton Friedman who, in the video below, knocks Bernie and Hillary’s free lunch rhetoric out of the park.

SERFDOM OR FREEDOM

Bernie and Hillary tried to out do each other on what they will give away if elected. But, since Government doesn’t produce anything. It can’t give anything away unless politicians and bureaucrats try one or all of the steps listed below.

1)  They can force the person who produces the good or service to provide it for free.

2) They can confiscate money from citizens (taxes) to pay the people who produce the good or service.

3) If they can’t steal enough, they have to borrow money to pay the people who produce the good or service.

4) If they can’t do #2 or #3, they have to get the Federal reserve to print money to pay the people who produce the good or service.

Our Government has spent a little over a half a trillion (500 billion) dollars more than it has taken in taxes each of the last 3 years. These three years follow a three-year period in which it spent over a trillion more than it took in taxes in each year. So as you can see we have exhausted step 2 and are at full speed on steps 3 and 4.

Since no one will work for nothing when they have other options, step one is difficult to implement. Step two has its limits as revenue will start to decrease if taxes are too high. Step 3 syphons money from capital markets and moves it into consumption activities (which is what government spending is). If Government borrows too much, interest rates will go up, the cost of the debt will increase, and Government will have a hard time selling its debt. At this point step 4 will be implemented. The Federal Reserve will step in and buy U.S. T-Bills with electronically printed counterfeit money. Step four is how the Government can fund itself if 2 and 3 are maxed out.

These steps are not a part of a free society, they happen in a country that is heading toward a centrally planned Marxist society. If the government doesn’t own the means of production out right, it uses its force to control the privately owned means of production. This is where we are, and I think you can see the direction we are headed unless ‘we the people’ turn this around.

Related ArticleMilton Friedman, Moving Toward Serfdom, at austrianaddict.com

Related ArticleMilton Friedman: Market Failure vs. Government Failure. Which Has A Higher Cost? at austrianaddict.com.

Related ArticleThe Essential HAYEK. at austrianaddict.com.

 

Must Reads For The Week 6/13/15

June 12, 2015
The pen is mightier than the sword...

 The pen is mightier than the sword… (Photo credit: mbshane)

Government Subsidies Helped Elon Musk Attain $13.3 Billion Net Worth, at ipwatchdog.com. Crony capitalist Elon Musk says his companies would still be in business without government assistance. Why doesn’t he try it without our tax dollars, just to see if he is right.

Obamacare Is Working Even Better Than President Obama Expected, by Peter Sunderman, at reason.com. The president either had low expectations, or he expected healthcare premiums to “necessarily sky-rocket”.

Department Of Justice Uses Grand Jury Subpoena To Identify Anonymous Commenters On A Silk Road Post at Reason.Com, at targetliberty.com. A quote by George Washington comes to mind. “Government is not reason, it is not eloquence, it is force, like fire it is a dangerous servant, and a fearful master.

Lake Wobegon On Steroids, Where All The Students Are Valedictorians, by Mark J. Perry, at Carpe Diem blog. From the article, “Roughly 20% of all graduating seniors at Dublin Ohio’s three high schools were awarded valedictorian status”.  With 222 recipients, there really is no status in being awarded valedictorian status.

Jail For Missed Days At School? The Madness Of Truancy Laws, by Walter Olson, at reason.com. From the article. “Washington Post columnist Petula Dvorak has reported on a 13-year-old straight-A piano prodigy charged with truancy in D.C. for taking ten days off to play on international concert stages.” Remember the above quote by George Washington, “Government is not reason, it is not eloquence, it is force, like fire it is a dangerous servant, and a fearful master.

Texas Police Officers Shutdown Girls Lemonade Stand Because They Didn’t Get Health Permit, at huffingtonpost.com. These two young entrepreneurs learned a great lesson about what the greatest impediment to their success will be, government intervention. The good news is they did what we all do when it comes to government regulation, they found a way around it. The cop said this, We just have to enforce ’em, we don’t write ’em.” This is the problem. There laws regulating everything. Police Chief Clyde Carter stated this gem, “It’s illegal to sell lemonade without a permit. But we didn’t tell them to shut down, we just asked them to get a permit.” I have a question for Chief Carter. If they wouldn’t have gotten a permit, would you have shut them down or let them continue. I think verbal sleight of hand artist Chief Carter has a bright future in politics. “Government is not reason, it is not eloquence, it is force, like fire it is a dangerous servant…...”

House Approves New NSA Reform Measure, at districtsentinel.com. Representative Thomas Massie got his amendment concerning collusion between the National Institute of Standards and Technology, the NSA, and the CIA concerning encryption standards. I know it’s hard to believe but these agencies were weakening encryption on consumer telecom services, so they could put back doors into the software for the purpose of spying on you without a warrant. “Government is not reason, it is not eloquence, it is force……”

U.S. Tech industry Appeals To Obama To Keep Hands Off Encryption, at entrepreneur.com. Does this have anything to do with the above article? “Government is not reason, it is not eloquence…..”

Channel Stuffing The Economy: There Has Never Been More Cars “On The Sidelines“, at davidstockmanscontracorner.com. Cars are counted as sold when manufactures sell them to dealerships. So even though consumers haven’t purchased the cars they are still counted as sold. You can show increasing sales by stuffing your cars onto dealers lots.

20 Years Later, Bill Clinton’s Home Ownership For America Is Dead, at zerohedge.com. Lowering lending standards created demand for borrowed money to purchase housing. The Federal Reserve supplied this demand with electronically printed counterfeit money. This brought future consumption into the present. What will replace this future consumption when its time comes? If you look at the chart in the article, you can see the government induced boom and corresponding bust. This boom and bust shows how real future consumption was moved forward in time, followed by less demand as the future became the present. A lot of future demand for goods and services was and is being used up by mortgage payments. Fed counterfeiting and Keynesian government spending distorts markets, enriches those who receive the counterfeit money first, and wastes scarce resources.

The Simplest Way To Describe Keynesianism In One Photo, at zerohede.com. Keynesian government spending takes water out of the deep end of the pool and dumps it into the shallow end.

Cartoons From The Burning Platform.

Political Cartoons by Chip Bok

Political Cartoons by Dana Summers

 

 

 

 

Must Reads For The Week 6/6/15

June 6, 2015
The pen is mightier than the sword...

 The pen is mightier than the sword… (Photo credit: mbshane)

Why Butter And Eggs Won’t Kill Us After All: Flawed Science Triggers U-Turn On Cholesterol Fears, by Chris Brooke, at dailymail.co.uk. So your telling me that global warming science isn’t settled! I can’t wait to have bacon with two eggs over easy and real butter on my toast this Sunday morning. Hat Tip lewrockwell.com.

Rent A Car Drive For Uber, at money.cnn.com. HyreCar is a start up that brings individuals who want to rent their personal car and people who want to drive for Uber or Lyft. Technology is helping us use our scarce resources more productively.

zTailors – High-Quality Affordable Tailoring At Your Door, at aTailors.com. Tailors making house calls.

North Korea Is Kind Of Awesome At Earth Hour, by Sean Davis, at thefederalist.com. If only crazy environmentalists could be as committed to not using electricity as the North Koreans are.

The Danes Are Revolting: Tax Administration Set On Fire, at zerohedge.com. No comment needed.

Free Speech Facebook And The NSA: The Good The Bad And The Ugly, at zerohedge.com. Do you think the NSA quit collecting data for the three days prior to the Patriot Act being reauthorized? Not a chance. Data collection, in violation of the fourth amendment, is here to stay. What would government do with the massive data collection center in Utah?

Protecting Perks, Power, And Profits Has Perverted The Entire System, at zerohedge.com. Electronically printing counterfeit money brings the future into the present before its time. Here is an excerpt form the article, “Cronyism depends on the credit bubble. the future is where new wealth is created. When you try to stop and twist the future into the shape you want, you prevent the future from ever happening. So you switch from creating wealth now to taking wealth from the future so you can consume it now.

From Whence Cometh Our Wealth- Peoples Labor Or The Fed’s Printing Press? by David Stockman, at davidstockmanscontracorner.com. If you were stranded on a deserted island you would have to use labor to produce food, whether is was knocking coconuts out of a tree, or catching fish. If I could give you a million dollars would it do you any good? The money would only have value in starting a fire or for use as toilet paper. It would have no exchange value.

CARTOONS

 

 

 

Real Savings = True Credit. Printed Savings = False Credit

March 12, 2015

In this article titled, Understanding True Credit And False Credit, by Frank Shostak at mises.org, explains the difference between real credit that is backed by savings from real production, and counterfeit credit that is created by the printing press.

Don’t think of money when we talk in terms of real credit, think in terms of real things that are first produced, then saved and finally loaned as credit. Money is how we facilitate the exchange of goods and services either in the present or at some time in the future because of saving. Credit is a part of this future exchange.

Here are some excerpts from the article.

“Banks cannot expand true credit as such. All that they can do in reality is to facilitate the transfer of a given pool of savings from savers (i.e., those lending to the bank) to borrowers.

“Consider the case of a baker who bakes ten loaves of bread. Out of his stock of real wealth (ten loaves of bread), the baker consumes two loaves and saves eight. He lends his eight remaining loaves to the shoemaker in return for a pair of shoes in one-week’s time. Note that credit here is the transfer of ”real stuff,” i.e., eight saved loaves of bread from the baker to the shoemaker in exchange for a future pair of shoes….Note that the saved loaves of bread provide support to the shoemaker. That is, the bread sustains the shoemaker while he is busy making shoes. This means that credit, by sustaining the shoemaker, gives rise to the production of shoes and therefore to the formation of more real wealth. This is the path to real economic growth.

“The introduction of money does not alter the essence of what credit is. Instead of lending his eight loaves of bread to the shoemaker, the baker can now exchange his saved eight loaves of bread for eight dollars and then lend them to the shoemaker….Money fulfills the role of a medium of exchange. Thus, when the baker exchanges his eight loaves for eight dollars he retains his real savings, so to speak, by means of the eight dollars. The money in his possession will enable him, when he deems it necessary, to reclaim his eight loaves of bread or to secure any other goods and services.”

“The existence of banks does not alter the essence of credit. Instead of the baker lending his money directly to the shoemaker, the baker lends his money to the bank, which in turn lends it to the shoemaker. In the process the baker earns interest for his loan, while the bank earns a commission for facilitating the transfer of money between the baker and the shoemaker….Despite the apparent complexity that the banking system introduces, the essence of credit remains the transfer of saved real stuff from lender to borrower.

“Trouble emerges when instead of lending fully backed money, a bank engages in issuing empty money (fractional reserve banking) that is backed by nothing….When unbacked money is created, it masquerades as genuine money that is supposedly supported by real stuff. In reality however, nothing has been saved. So when such money is issued, it cannot help the shoemaker since the pieces of empty paper cannot support him in producing shoes — what he needs instead is bread. Since the printed money masquerades as proper money it can be used to divert bread from some other activities and thereby weaken those activities. This is what the diversion of real wealth by means of money out of “thin air” is all about.”

“We can thus conclude that as long as the increase in lending is fully backed by real savings it must be regarded as good news since it promotes the formation of real wealth. False credit, which is generated out of “thin air,” is bad news since credit which is unbacked by real savings is an agent of economic destruction.

Here is a previous post titled, Printed Money Doesn’t Represent More Savings, in which we talk about how electronically printing counterfeit money doesn’t produce any good or service, it is just the creation of a piece of paper that allows who ever receives it the legal right to demand someones production.

Related ArticleWhat Comes First, Production Or Consumption, at austrianaddict.com.

Related ArticleCapital Consumption aka Eating Our Seed Corn, at austrianaddict.com.

Related ArticleThe Role Of Interest Rates In A Market Economy, at austrianaddict.com.