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Max Keiser: central banks had the "wrong model", no countercyclical effect

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Helsworth
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Max Keiser: central banks had the "wrong model", no countercyclical effect



­In this episode, Max Keiser and Stacy Herbert look at the the central bank revolution that will end in disaster with Japan leading the way after voters have demanded even more aggression with the nation’s monetary policy. They also look at Moody's ratings getting no respect because nobody has done better than flipping a coin for 50 years in a slow burning prison. In the second half, Max Keiser talks to Peter Schiff about bonds, dollars and governments buying their own debt.

Japan is about to enter the global bond market. Till now, the japanese government had financed its debt by domestic investors. There's too much cheap money out there, that goes into the pockets of the corrupt transcotinental banking system. To quote a quote from the last episode of the Keiser report, keynsian spending works when you have a surplus. You can't spend your way out of the deficit while not correcting that balance. Obviously, physical production is what backs the currency. Money has no intrinsic value. The physical economy should dictate the value of the currency, not the other way around. I've been following some of these MMTers, and from what I saw, they're just concerned with imposing their graphs upon the former graphs of bullshit theories. I see the same generalizations when they use the term "spend" and "spending". And when they say that they're more concerned about economic policies instead of politics... well, need I say how naive that is? You cannot have one without the other. Politics is inseparable from economics and vice-versa. You can't apply ideal economic policy if you upset the geostrategic and monetarist empire. And there are so many factions to take into account while looking at the world stage. So I say, we don't need more printed money, we don't need too big to fail banks, we don't even need a central bank. Use bills of exchange and checks in order to bring the capital goods together on the land, together with labor and give it fire (energy). That's all it is. Food, roads, and soldiers can fight off inflation - and that's a posteriori verified. Deficits should be separated from bureaucracy costs and public investments. An investment you make it once, and it no longer appears in the deficit, but in the overal debt. It's possible to acquire a debt of 1000% of GDP at 0 deficit, or near 0 deficit. Kick off in one year all those necessary projects in agriculture, industry, energy, infrastructure, and manufacturing; then let the people work/let them produce.
Ergo, until I see popular economists - regardless of school of thought - attacking banks, governments, central banks, corruption, imperialism/wars, derivatives and legislation, I won't take them seriously. Physical development is anti-inflationary! As time moves on, us humans are using up the more dense resource deposits, and sooner we're going to have to exploit deposits which are less dense in resources, and that's going to be commercially unviable without utilizing high energy flux density source of power. Think of the scalar, called flux, applied perpendicularly on a unit of area in a unit of time. Think of the energy that you need to apply to the rock, in order to get from it the scarce resource, the less dense resource. You need to increase productivity, else physical inflation will eat your ass. Compared to the dinosaurs, mammals are a hell of a lot more productive and efficient. The biogenic migration of atoms is a marvelous thing, and there's something immaterial and uber powerful spawned from that - i.e. the human creative reason, the world of ideas. However, those ideas can get us in the gutter and keep us there, as much as uplifting us. Right now, in my opinion, the trend is downward.


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This post was last modified: 22.12.2012 22:41 by Helsworth.

22.12.2012 22:29
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Rising Phoenix
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RE: Max Keiser: central banks had the "wrong model", no countercyclical effect

There are some people whose inertia regarding the status quo prevents them from even considering that change might be beneficial even to them. Unfortunately for us, those people hold vast financial institutions.

23.12.2012 16:22
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