michaelangerlo:

sugashane:

goguns:

libertarians-and-stoya:

sugashane:

libertarians-and-stoya:

sugashane:

libertarians-and-stoya:

I mean Bernanke isn’t the Keynesian that Krugman is.

If anything, I’d put him up there with Mankiw and honestly Mankiw isn’t as insufferable as Krugman is.

But yeah I…

The average US citizen benefits from the reserve currency system in the same way that a group of wild animals benefit from an 85 year old terminally-ill cancer patient feeding them every night.

I’m not sure I understand that metaphor but the US Citizens do benefit from the Fed and the Fiat Currency we push as well as the wars we fight. 

All of it has been to our benefit. 

The problem is that the system is unsustainable. Eventually, you run out of willing trade partners and you run out of confidence in your currency. 

The good part about our money is that everything associated with it is deferred. 

The bad part about our money is that everything associated with it is deferred. 

That’s the underlying philosophy of Keynes and his General Theory. “In the long run, we’re all dead”. 

The theory is that we can, if we are actually careful and diligent and near perfect with our monetary policy, we can always put off the debts and virtually no one will notice and we can keep this up for as long as others are willing to believe that we are strong and capable and wealthy. 

The problem is that when it catches up with you, the entire system crumbles onto our heads. 

The citizens of America haven’t really had to bear the burden of our own flawed system. We are just coming under attack because of it from both abroad and within. But, until now, we’ve all benefited from it. No need to lie about that. 

“our” benefit? “we’ve all benefited”?

No.

“they” benefit. Those who get the fake money first. And at our expense, especially those of us who are responsible and save (and are thus those who actually help grow the economy). All we get is price inflation and less power with regards to how resources are allocated since the market is tampered and resources are funneled where this fake money goes. 

“we need a fed” says L&S. lol. 

Yes, to our benefit. Most certainly to the benefit of banks, corporations and politicians, but the people have seen benefits from the fiat currency, as well. 

Simply put, we’ve printed, borrowed and spent money that literally didn’t exist. That’s paid for your infrastructure, our imports, our monetary advantage, our defense, our technological developments. Everything. 

You think we just had money to blow on things like a space race or nuclear arms development because we were awesome? No. It was because we built a system, got the rest of the world to buy into it and then reaped the benefits. 

Do we have hell to pay for what we did? Yes. The people of America will be fucked for decades. But for a century of development, we’ve had the luxury of trillions of dollars of printed or borrowed funds. No denying this.