From: | Joshua N Pritikin <jpritikin(at)pobox.com> |
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Date: | Mon, 17 Jan 2011 14:33:12 -0800 |
Subject: | Re: [WDDM] Economics and Change |
So, I see some wierd stuff here.
So, we have Zero percent loans, and at the same time, we are going to move
to 100% reserves for money. So, we are going to increase the demand for
loans dramatically (0% interest) while we decrease the supply of money
dramatically (Increased reserve ratios). There has to be a third factor, or
magic pixie dust... or this simply will not work.
There must, of couse, be rationing... there is already rationing, and they
still say not enough money is out there. So, who decides on the rationing?
And, of course, Arbitrage. No one watches for arbitrage, but it is always
there. Someone will buy a 0% loan and then they will resell it at it's
natural value, pocketing the difference.
We are welcoming price fixing (0% interest is price fixing), and so we
should expect smuggling in its many forms... Arbitrage, imbezzlement,
etcetera.
If I have an investment that has a 20% return, I will get the funds,
even if they don't come to me through traditional channels. If I am
forced to repay all profits, there will be mysteriously few profits.
If there is a committee that decides who gets the money, I will try to
get on that committee... or buy someone friendly on it.
This "reform" looks like it was written as a parachute for the banking
industry... another way to squeeze us incase we wise up to the current
scheme.
NO central banks. We should take the advice of Thomas Paine, George
Washington, Thomas Jefferson and the rest. A central bank with zero percent
loans is still a central bank. If you elect fiat money in any form, you
invite all the attendant ills. To start with, it is theft. To make things
worse, it destroys the wealth of a society.
But, WHY? Why not go to a commodity standard and let citizens choose their
currency.
You can have a central bank as long as you allow competition, because
the central bank cannot survive in that environment. I'd be happy to
see them try and pass off a money that goes down in value every year
when any natural currency has the tendency to increase in value.
Central banks require compulsion... even one with "For the People"
scrawled over the door.