Free Capitalist Network - Community Archive
Mises Community Archive
An online community for fans of Austrian economics and libertarianism, featuring forums, user blogs, and more.

Combining Economies

rated by 0 users
Answered (Not Verified) This post has 0 verified answers | 9 Replies | 3 Followers

Not Ranked
20 Posts
Points 440
Pyramid posted on Thu, Oct 16 2008 2:15 PM

Does anyone think that as central banks inflate their money supply they'll eventually go bankrupt and that in order to avoid that outcome they will combine with other economies to stay afloat?  I wonder if governments will take a cue from businesses that avoid bankruptcies by allowing themselves to be swallowed by a bigger fish.

 

  • | Post Points: 35

All Replies

Top 500 Contributor
202 Posts
Points 3,075

Pyramid:

Does anyone think that as central banks inflate their money supply they'll eventually go bankrupt and that in order to avoid that outcome they will combine with other economies to stay afloat?  I wonder if governments will take a cue from businesses that avoid bankruptcies by allowing themselves to be swallowed by a bigger fish.

No.

  • | Post Points: 20
Not Ranked
20 Posts
Points 440

Why not?  Wouldn't this be a perceived advantage of economic and monetary union?

  • | Post Points: 20
Top 100 Contributor
Male
901 Posts
Points 15,900

They might.  It would just delay the collapse, though, and it would be far worse than otherwise.

Market anarchist, Linux geek, aspiring Perl hacker, and student of the neo-Aristotelians, the classical individualist anarchists, and the Austrian school.

  • | Post Points: 20
Not Ranked
20 Posts
Points 440

I agree.  I do not think that the recent actions by central banks or by Paulson and Bernanke were made out of ignorance.  I believe they now EXACTLY what they are doing which is contraian to Austrian economics.  In being contrary they themselves are on the opposite of the coin when it comes to economic liberty.  We are already seeing the freedoms of the market being taken away by nationalizing the banking institutions and I see the combining of economies as a perceived though not actual solution.

  • | Post Points: 5
Top 50 Contributor
Male
2,221 Posts
Points 34,050
Moderator
Suggested by Nitroadict

Pyramid:

Does anyone think that as central banks inflate their money supply they'll eventually go bankrupt and that in order to avoid that outcome they will combine with other economies to stay afloat?  I wonder if governments will take a cue from businesses that avoid bankruptcies by allowing themselves to be swallowed by a bigger fish.

 

Yes & No.  If we were to be under a total world economy (& proxy, world government), a total depressiong and/or recession would be far worse than what will occur now, and the central planners may realize this. 

I think we will further evolve towards a more concrete Polyarchy (http://en.wikipedia.org/wiki/Polyarchy), with sham nations & borders put up for face to hide the increasingly consolidating (smaller & smaller) oligarchy profiting & controlling the world economies.

I believe further State-Socialism will be integral in providing the farce hiding the emerging Klepocratic and/or Fascist rule.

"Look at me, I'm quoting another user to show how wrong I think they are, out of arrogance of my own position. Wait, this is my own quote, oh shi-" ~ Nitroadict

  • | Post Points: 20
Top 10 Contributor
Male
4,985 Posts
Points 90,430

Nitroadict:

I believe further State-Socialism will be integral in providing the farce hiding the emerging Klepocratic and/or Fascist rule.

In today's daily article by Shostak he mentioned the Fed will now extend loads directly to big buisness, are they even bothering to hide it?

"You don't need a weatherman to know which way the wind blows"

Bob Dylan

  • | Post Points: 35
Top 50 Contributor
Male
2,221 Posts
Points 34,050
Moderator

GilesStratton:

Nitroadict:

I believe further State-Socialism will be integral in providing the farce hiding the emerging Klepocratic and/or Fascist rule.

In today's daily article by Shostak he mentioned the Fed will now extend loads directly to big buisness, are they even bothering to hide it?

I meant on the citizen level, with government propaganda revving up to spin such blatant & obvious actions, that all of this will be percieved as "necessary", with a watered down expectation of the government being socialist eventually following. 

For those that know better though, it will become even more of a double-speak, passing the buck nightmare than it already is.

"Look at me, I'm quoting another user to show how wrong I think they are, out of arrogance of my own position. Wait, this is my own quote, oh shi-" ~ Nitroadict

  • | Post Points: 5
Top 100 Contributor
862 Posts
Points 15,105

GilesStratton:
In today's daily article by Shostak he mentioned the Fed will now extend loads directly to big buisness, are they even bothering to hide it?

Didn't read the article so...

That's the whole point of a 'helicopter drop', to bypass the financial intermediatries and get money past the 'liquidity trap' to solve the credit crunch.

Old Helicopter Ben has made no effort to hide his intentions on this matter.

  • | Post Points: 20
Top 10 Contributor
Male
4,985 Posts
Points 90,430

My finance teacher was telling the class today that the central bank was independant of the government, I lol'd.

"You don't need a weatherman to know which way the wind blows"

Bob Dylan

  • | Post Points: 5
Page 1 of 1 (10 items) | RSS