It would seem that using the printing press on currency always leads to trouble ( inflation, assault on savings ect ) , can you ever justify printing money?
Dustin S. Jussila: It would seem that using the printing press on currency always leads to trouble ( inflation, assault on savings ect ) , can you ever justify printing money?
No.
Abstract liberty, like other mere abstractions, is not to be found.
- Edmund Burke
Spideynw: Esuric:How the hell did you come to this conclusion? Because money is just like any other commodity. It has a supply/demand curve.
Esuric:How the hell did you come to this conclusion?
Because money is just like any other commodity. It has a supply/demand curve.
But there is qualitative difference between issuing fiduciary media without the necessary reserve backing commodity and producing more of this commodity.
Lord Rochester:So... You're saying that if I were a pig farmer and decided to increase my production of hogs because the demand for hogs was high, I'd be doing something illegal because it would take away from the value of my hog farming neighbor's hogs?
So... You're saying
February 17 - 1600 - Giordano Bruno is burnt alive by the catholic church. Aquinas : "much more reason is there for heretics, as soon as they are convicted of heresy, to be not only excommunicated but even put to death."
Spideynw:Because money is just like any other commodity. It has a supply/demand curve.
I don't understand this comment. Commodities are not homogenous, in fact, there are three separate categorizations. Creating production goods and consumption goods increases wealth; the same is not true for money.
"If we wish to preserve a free society, it is essential that we recognize that the desirability of a particular object is not sufficient justification for the use of coercion."
Juan:By the way, I suppose I'm free to print as many notes of the Rochester Bank as I wish, in order to satisfy my (and others') "demand for money". Amoralist 'libertarians' surely won't object to such use of my ink, my paper and my printing press.
This is a question regarding economics, not ethics.
“Elections are Futures Markets in Stolen Property.” - H. L. Mencken
@zefreak
he said amoralist
Where there is no property there is no justice; a proposition as certain as any demonstration in Euclid
Fools! not to see that what they madly desire would be a calamity to them as no hands but their own could bring
Esuric: Wilmot of Rochester:So... You're saying that if I were a pig farmer and decided to increase my production of hogs because the demand for hogs was high, I'd be doing something illegal because it would take away from the value of my hog farming neighbor's hogs? How the hell did you come to this conclusion? What he's saying is that the money he deposits in his bank, which he assumes is held by the bank, should not be used for a thousand different kinds of financial transactions. Transactions which deleverage the banks, cause trade cycles, and panics. He hopes that at any point in time he can simply go to the bank, get his money, without being told: "I'm sorry, we don't have your money at the moment." If the demand for my pizzas are great, I actually need more dough, cheese, toppings, ect. I can't just create cardboard pizzas and deliver them hoping that no one notices; unfortunately, money is fungible. Are you trolling or what?
Wilmot of Rochester:So... You're saying that if I were a pig farmer and decided to increase my production of hogs because the demand for hogs was high, I'd be doing something illegal because it would take away from the value of my hog farming neighbor's hogs?
How the hell did you come to this conclusion? What he's saying is that the money he deposits in his bank, which he assumes is held by the bank, should not be used for a thousand different kinds of financial transactions. Transactions which deleverage the banks, cause trade cycles, and panics. He hopes that at any point in time he can simply go to the bank, get his money, without being told: "I'm sorry, we don't have your money at the moment." If the demand for my pizzas are great, I actually need more dough, cheese, toppings, ect. I can't just create cardboard pizzas and deliver them hoping that no one notices; unfortunately, money is fungible. Are you trolling or what?
Well then he probably should have read the contract he signed with the bank, or at least put two and two together - why would they pay you to host your money there, anyways?
Of course, if he was so concerned, he always could have skipped the bank.
existence is elsewhere
Juan: Lord Rochester:So... You're saying that if I were a pig farmer and decided to increase my production of hogs because the demand for hogs was high, I'd be doing something illegal because it would take away from the value of my hog farming neighbor's hogs? Wrong analogy. So... You're saying I'm saying you do not know what you are talking about. It seems you believe that throwing around words like 'supply' and 'demand' means your analysis is sound ... but it is not.
Well thank you for explaining why, at least.
you are missing the point.
http://mises.org/Community/forums/p/8896/231338.aspx#231338
Go ahead. I don't know who would then use the notes if they were so laxly printed, but it sounds fine to me.
Unless you're saying that you want to print notes from a bank owned by me, which is an absurd idea - I'm not into owning banks for money, drugs and firearms are another story though.
Wilmot of Rochester:why would they pay you to host your money there, anyways?
To lend at a higher rate of interest?
Wilmot of Rochester:Well then he probably should have read the contract he signed with the bank
So the banks are allowed to engage in embezzlement and fraud as long as average people miss the fine print, or don't understand it? Does this apply to every industry? If so, I have a deal for you! Just sign right here.....
Wilmot of Rochester:Go ahead. I don't know who would then use the notes if they were so laxly printed, but it sounds fine to me.
Unfortunately, we don't have government armies enforcing our fraudulent notes.
Esuric: To lend at a higher rate of interest? So the banks are allowed to engage in embezzlement and fraud as long as average people miss the fine print, or don't understand it. Does this apply to every industry? If so, I have a deal for you! Just sign right here.....
So the banks are allowed to engage in embezzlement and fraud as long as average people miss the fine print, or don't understand it. Does this apply to every industry? If so, I have a deal for you! Just sign right here.....
So they're giving you money to host your money at their bank out of charity because they're making enough money on interest rates from other loans...? Ok.
As far as most people go, I doubt most people care - only the fringes on the internets really pay any attention to this stuff - and furthermore, it's called legalese and yes, every industry uses it.
Unless you're saying that you want to print notes from a bank owned by me, which is an absurd idea - I'm not into owning banks
Juan:Go ahead. I don't know who would then use the notes if they were so laxly printed, but it sounds fine to me. I don't know what you mean by 'laxly printed' - Printing is a well defined physical process. Unless you're saying that you want to print notes from a bank owned by me, which is an absurd idea - I'm not into owning banks I'm saying anybody can print as many notes from any bank or 'phony money provider' as he or she wishes in order to satisfy his or her demand for money. Do you think that means bank notes will be used as wallpaper ? Well so what.
You're confusing a different issue here. Anybody can already print as many notes from any other bank as he wishes in order to satisfy his or her demand for money. Do you think dollar bills are being used as wallpaper? Well so what!
As for the first comment.... Ok....