Author: cd_moderator

Monetary system reform [Copy link] 中文

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Post time 2012-6-21 08:27:14 |Display all floors
Everynowhere Post time: 2012-6-20 13:45
That's all about perception. Social disparities are much more staggering in other countries - for  ...

Your sources regarding the US are questionable, as my understanding from what I read at the time, is that there was greater parity between rich and poor in the 60s and 70s than there is now.
Rich and poor people will always exist, it is a question of degree. The current level is unacceptable.

Europe in the 70s to the 90s was an exceptionally rich and happy place, full of life and optimism. Forced rapid expansion into Eastern Europe was detrimental to the European economy and unity, but hugely beneficial to the US.

The problems of the EU can be traced to that expansion into Eastern Europe and to the adoption of laissez faire capitalism.
The world needs more idiots like me, all the others think they are clever.

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Post time 2012-6-21 15:40:05 |Display all floors
The problems of the EU can be traced to that expansion into Eastern Europe and to the adoption of laissez faire capitalism.


Why's that? Are you referrig to the Solow growth model that states that a nation's income (=GDP) depends on the available capital per worker?

Generally, I do agree that Europe's per capita income declined due to the opening towards eastern Europe - but in the long term, I am still optimistic that it was the right decision. Consider that the capital stock per worker will increase again - then you'll find that the income will be same high, just the market will be larger and more people will be wealthy. So I wouldn't necessarily say that opening borders was such a bad thing...

However, I don't see why Europe's current debt problems are connected to Eastern Europe. The Euro-zone (that doesn't even include most eastern european countries) is struggling because the governments of most European nations were overspending - and most government money went into social care (=consumption) rather than infrastructure (=investments), which, in Solow's terms, decreased the capital stock.
The problem is very simple: governments were (and are) spending more than they earn. If the EU manages to fix this, Europe will be better off than most other economies in the long term, it's economy would grow very fast and the world's economic problems would be solved. If the Europeans don't manage to do it (which I fear is more likely), the EU will not be able to start over, inflation will have to take care of debts, investors will trust less, people will save less and the entire world's economic growth will stay sluggish.
I can't blame the US on this... it's Europe that keeps making mistakes.

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Post time 2012-6-22 13:11:23 |Display all floors
The only monetary reform needed is to BAN HFT(HIGH FREQUENCY TRADING) AND PONZI FINANCIAL PRODUCTS SUCH AS CDO AND CDS.

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Post time 2012-6-23 06:07:00 |Display all floors
Everynowhere Post time: 2012-6-21 15:40
Why's that? Are you referrig to the Solow growth model that states that a nation's income (=GDP) d ...

Expansion into eastern Europe changed the political and economic direction of the Europeans. Most ex communist block countries which joined the EU were very pro-US and facilitated the consolidation of US and NATO control over the continent. Prior to that the French and the Germans were planning an EU defense force but as most new members were keen to join NATO all those plans soon died.

Similarly the EU was prior to the expansion following left of center policies with the workers charter at the heart of the EU "constitution".

You are right not to blame the US, it is the EU leaders which are found wanting.
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Post time 2012-6-23 06:52:15 |Display all floors
You are right not to blame the US, it is the EU leaders which are found wanting.


A nation always gets the leaders it deserves. Time for a change, I guess :)

The only monetary reform needed is to BAN HFT(HIGH FREQUENCY TRADING) AND PONZI FINANCIAL PRODUCTS SUCH AS CDO AND CDS.


Why's that? Those technologies contributed to moderating, not escalating the financial system as they facilitated information flow.

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Post time 2012-6-23 14:02:48 |Display all floors
Everynowhere Post time: 2012-6-23 06:52
A nation always gets the leaders it deserves. Time for a change, I guess :)
Why's that? Those technologies contributed to moderating, not escalating the financial system as they facilitated information flow.


Which technologies are you referring to?
The world needs more idiots like me, all the others think they are clever.

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Post time 2012-6-24 19:31:46 |Display all floors
this is really about monetary philosophy

and at the end of the day, what people will accept as a medium of exchange

diluting one fiat with a bunch of other fiats means little

it is all still fiat

the internet (darknet) is hopefully the crucible of a new money, outside of the clutches of the gatekeepers

exciting times
(beast ex machina)

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