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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: neolib who wrote (251785)	6/6/2010 1:45:05 AM
From: Skeeter Bug	Read Replies (1) \| Respond to of 306849

>>At first your responses denied that anything remotely like money was created by private IOUs.<< this is true if one takes the most obvious definition of money - which is how i was using it. if it has not legal authority to pay off debts, it ain't money. >>You denied that money was created when the example was an Island without a legal currency.<< i missed the part about a barter society - did you mention that? perhaps you thought it but didn't make it clear. perhaps i just missed it. my argument with debt based money (legal tender for all debts) isn't relevant on that island. >>Thats why I could not understand your obtuseness. You kept claiming no money was created,<< no legal tender payable for all debts was created. in a barter society, nobody has to accept anything. "stuff" absolutely is money in one sense of the word, but that is not the typical sense of the word and it is not how the financial oligarchs have created their ponzi system. >>and specifically said that reciprical IOUs issued on my island (which lacked legal tender laws) cancelled out and didn't amount to money.<< if i had considered your island had no legal tender, i simply would've stated what i'm stating right now - it is apples and oranges. our system today, the one that is gamed by a criminal banking cartel - both a foreign and domestic enemy - isn't a barter / IOU system. >>I was never trying to claim that private IOUs in the USA are legal tender, or that they are anywhere remotely as useful in the USA.<< it is the debt based, federal reserve note system that is a criminal ponzi scheme at its very core. >>In the town I live in, I can't take gold or silver nuggets, gold or silver bars, or even gold or silver coins, or private IOUs, or even foreign currency from any other country to 99+% of places of commerce and use them for payment. In fact, I don't think my local bank even does foreign currency conversion, and I don't think they will exchange gold or silver coins, let along try and deal with gold or silver bars. But I can use all of the above to pay ANYTHING including my mortgage by a two step process because all of the above can function as money due to a market existing for them.<< the step you are missing is that the available money supply is CONTROLLED by private bankers. you may have all the gold in the world, but if THERE ARE NO FEDERAL RESERVE NOTES AVAILABLE, you will lose that house. while this argument isn't intuitive on the personal level, look at it from a societal stand point. if society owes $10 trillion in debts (that require legal tender to pay), but there is only $8 trillion that exists - someone is hosed. money supply is now shrinking as the debt load EXCEEDS money supply... market-ticker.denninger.net let's make this real world. instead of paying out $800 billion in tarp money, we could have funded a state bank. that bank could have produced $8 trillion in INTEREST FREE LOANS to help run this country during these tough times. instead, society is being sucked dry to the tune of 3% to 40% - at a time when the turnip doesn't have much blood left. analyze the actions of government and you will see an organization that is sucking the nation dry to prop up failed banks - meaning they value the banks well above the nation state. that perversion will not end well for the people of this nation. the wooner they figure that out, the better.