Faber sees bull run ending as recession looms for US

[gnome]

Quote from ConsiderThis1:

Okay, (I don't understand a lot of what you are saying, but I lived with a "boffin" in London for awhile in the 70s and he talked about Keynes. I think that's where the whole money pump idea came from... Yes?)..

Actually, the "government money pump" concept is as old as civilization. Even the Roman Empire, arguably the relatively greatest the planet has ever known, destroyed themselves with it. (Modern governments have a more efficient mechanism now, but the concept is the same.)

The US Gummint has a HUGE vested interest in (1) money-pump inflation, and (2) getting away with it... that's why all of the rhetoric and lies.

 

[ConsiderThis1]

I wanted to say that the boffin was self described. I was unfamiliar with the word when he used it. (I met him when he was in a think tank in Monterey.)

Yes, I'm sure the money pump is useful to government and, that being true, that it's been that way for a long time. But I think it was Keynes who advised the priciples in modern times.

I know John, the boffin, told me that buying things was actually a hedge against inflation since the things would go up in price while money would be worth less. So, in a year the thing would be worth more than the same amount of money.

(The only thing I'm not sure that's true about, is computer equipment... and now that I think about it, cars and a lot of other things...)

 

[gnome]

Quote from ConsiderThis1:

"... I think it was Keynes who advised the priciples in modern times...."

Keynes did the world no favor. If he wasn't already dead, he'd be owed a kick in the balls from each of us, minimum.

 

[ConsiderThis1]

Quote from gnome:

Keynes did the world no favor. If he wasn't already dead, he'd be owed a kick in the balls from each of us, minimum.

I don't disagree. I'm just saying.

But overall I get the impression he's lauded.

 

[stock_trad3r]

Wrong again

 

[gnome]

Quote from ConsiderThis1:

I don't disagree. I'm just saying.

But overall I get the impression he's lauded.

Of course.... by the perps who benefit from his bilge.

 

[ConsiderThis1]

Quote from gnome:

Of course.... by the perps who benefit from his bilge.

Okay, so let me see if I understand what you are saying. Keynes was the economist who contributed the most to our economy as we know it.

Previously we had a gold standard.

There is significant difference between the two systems.

Without a gold standard the government can create the value of its money... is that sort of what you are decrying?

 

[gnome]

Quote from ConsiderThis1:

Okay, so let me see if I understand what you are saying. Keynes was the economist who contributed the most to our economy as we know it.

Previously we had a gold standard.

There is significant difference between the two systems.

Without a gold standard the government can create the value of its money... is that sort of what you are decrying?

I doubt "create the value of its own money" is the appropriate description. Governments have a long and consistent history of devaluing its own money for short term political gain (and personal enrichment).. all of which is at the expense of and is detrimental to its citizens in the long run.

 

[ConsiderThis1]

Quote from gnome:

I doubt "create the value of its own money" is the appropriate description. Governments have a long and consistent history of devaluing its own money for short term political gain (and personal enrichment).. all of which is at the expense of and is detrimental to its citizens in the long run.

Devaluing is a form of valuing. Gold as a standard inhibited artificial devaluing.

 

[gnome]

Quote from ConsiderThis1:

"... Gold as a standard inhibited artificial devaluing.

That's why (1) Governments DESPISE it, and (2) why citizens should DEMAND it.