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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (100401)	4/26/2013 3:12:39 PM
From: Maurice Winn	4 Recommendations Read Replies (1) \| Respond to of 217836

C2, it's not the banks expecting deflation [though they likely do] which stops people applying to borrow money, it's that the potential borrowers [like me] do. Not only do I not borrow money, because the returns would be smaller than the cost of the loan, I have not even spent all of my own money which sits idling in a bank while I come up with a good idea for it. < The excess reserves, big piles of money, are not being put to use by banks in the form of loans, investments, etc., not because they expect deflation, as you contend, but because there is no demand for them > Governments have not forgotten about debt "foregiveness" aka robbing savers by breaking promises. There is nothing meritorious in it. It is meretricious. It destroys incentive for savers to save and make loans. When capital cannot form, countries like Sumeria are the result. If you look at the example of Sumeria, you will not see a wonderful country now. < We have forgotten the ancient, pre-Biblical custom of debt forgiveness. In ancient times, debt=slavery. Wiping the Sumerian slates clean was a wonderful custom. We are too greedy and removed from this ancient wisdom. This book is in that regard IMO as important as Jay's French book: > Sumeria is a warning, not a good example. Since about 1965 I became aware of inflation aka robbing savers destroying the money I had earned. In the 1970s and 1980s, the government went berserk at it with inflation of 15%. Over 50 years, New Zealand has become like Sumeria - an economic basket case. It's notable that Islamic ideology is still to ban interest payments. No wonder Sumeria remains a basket case after thousands of years of "progress". My Sumerian ancestors sensibly left the area, some of them against their will but there was a lot of carnage back in the day so ancestors went in all directions with much interbreeding en route. We can be sure that governments today will continue the ancient Sumerian practise of robbing producers and savers. There is nobody else to rob. Strangely, some such as Warren Buffett think that a good idea. That will not return the USA to a position of glory and pre-eminence. Self-destruction is Sumerian. The stone work around Washington could well look like the stone work around Sumeria and Greece [the Acropolis] and parts of Europe [such as in Rome and Orange, Nimes and Avignon = remnants of days of glory. Robbing producers and savers is the road to failure and death. The idea that turning some of the infinite supply of 0s and 1s that the Federal Reserve has in their computers into actual 0s and 1s and getting banks to store those 0s and 1s in their computers will make goods and services appear is absurd. 0s and 1s are not reality. They are just a representation of reality. When held by producers and savers in exchange for the goods and services the producers and savers have sold, they represent the reward producers and savers expect for their efforts. If producers and savers are robbed then they will not produce goods and services. People don't get up and go to work each day for the shear fun of it. They expect to be paid too. Not paid in 0s and 1s but in actual goods and services which those 0s and 1s are supposed to represent. If the Federal Reserve sprinkles 0s and 1s everywhere and governments rob producers of goods and services [as has been happening] people will give up producing goods and services other than basic amounts that they need for survival. Producing 0s and 1s is not going to cause people to work to produce goods and services. Any idiot can produce 0s and 1s. It takes serious talent and effort to produce goods and services. Any idiot with a gun can rob producers of goods and services including robbing them of their 0s and 1s which they thought would reward them for past efforts. Robbery does not make a country wealthy. Sumerians have learned that over thousands of years. You would think so, though they don't seem to have actually learned it as they still ban interest and producers are robbed by the megalomaniac bosses. Mqurice