Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: PKRBKR who wrote (939928)	6/14/2016 5:47:01 AM
From: RetiredNow	Read Replies (2) \| Respond to of 1574509

Let me ask you a simple question: what works better in the long run, for 13 bankers at the Fed to decide what rates should be, or millions of buyers and sellers setting rates in the open markets based on supply, demand, risk, and reward? When the Fed sets rates low, it is a stealth tax, because it keeps the dollar priced artificially lower than what the open markets would price it at. And what did we say about price setting in a socialist/communist country? When you set prices lower than what they should be, you get players who leave the market and you get misallocation of capital. In this case, we have seen massive asset price increases, decoupling from the economy, and middle class stagnation as all the things they buy go up in price even as their wages do not. Want to see this most dramatically? When Nixon let the dollar float, he basically set the US on a course of secular stagnation of wages. He destroyed the American Dream for the middle class. See below what Keynes and Copernicus have to say about debauching the currency, which is what low interest rates, quantitative easing, and other forms of monetarist largesse are all about. Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose. - Keynes on Lenin's proposal to defeat capitalism ALTHOUGH THERE ARE COUNTLESS MALADIES that are forever causing the decline of kingdoms, princedoms, and republics, the following four (in my judgment) are the most serious: civil discord, a high death rate, sterility of the soil, and the debasement of coinage. The first three are so obvious that everybody recognizes the damage they cause; but the fourth one, which has to do with money, is noticed by only a few very thoughtful people, since it does not operate all at once and at a single blow, but gradually overthrows governments, and in a hidden, insidious way. - Copernicus