Thanks for the simplified explanation PSPR. I am just watching and observing from my living room in a Savantish way. I think we will see some inflation control soon. China, Oil and Iraq are the wild cards.
Michael B.
Michael B.
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Living Room Economist
- Thread starter ElectricSavant
- Start date
Quote from Trader5287:
This e-book is well done. Lot of meat here.
http://www.wizardsofmoney.org/about.html
Very interesting, just read the first chapter. The guy definitely has an agenda though, so I would take his personal opinions with a very large grain of salt.
I'm surprised that he said nothing about the value of production, or the fact that the purpose of money is to better facilitate production of actual goods and services by creating a liquid medium of exchange so that resources can be shared.
He's a little out of date regarding the fed's control over banks: the majority of bank lending instruments have 0% reserve requirements these days, which means they can get a lot more than 10X leveraged if they feel like it.
He glossed over the point that the fed never actually sets an interest rate, it only sets a target. It's extremely important to know that the fed doesn't actually control the money supply, they only guide it by manipulating the base rate- which means they can (and will) lose control at some point.
His insinuation that money is a zero sum game implies that capitalism is a zero sum game. This isn't true: it's possible for individuals to enjoy mutually beneficial exchange. I also thought his point at the end of the chapter about a zero sum game in terms of natural resources was a little smarmy and overly alarmist.
Long term estimates these days predict the earth's population will eventually peak around 9 billion and then go into to decline as developed world birth rates continue to fall. Add in the potential for exponentially increased energy supplies via better technology, and we'll be able to cultivate deserts if we feel like it.
He also misquotes scripture more than once- the bible never said 'money is the root of all evil,' which doesn't make sense if you think about it for three seconds (Adam and Eve didn't have any money). It says that money is the root of ALL KINDS of evil, very different and very true. Timothy was giving a general warning: stay away from get rich quick schemes or you'll probably regret it.
He also misreads the bible's condemnation of usury, which refers to the practice of lending at excessive rates of interest - i.e. gouging your customer - and not the practice of lending itself. In the parable of the talents, the master (God) asks one of the servants why he didn't at least have the good sense to put his money in the bank and get some interest on it if he didn't plan to invest it. That's hardly an indictment of capitalism.
All in all though a good read, if you recognize that the fed doesn't have as much power as he suggests, that there are good things about having a fed in spite of all the drawbacks, and that there's a lot more to the game than meets the eye.
Quote from pspr:
Well, I did look it up. it is
"For the love of money is the root of all Evil."
I Tim 6:10
Hmm, not familiar with your translation, all the ones I've seen, including the NIV on my desk, have 'all kinds'. The context and the original greek is what matters most. Unfortunately I'm not a greek scholar...
That wizards of money is great! Just read part two.
Again some points of disagreement, but his general thesis is very provocative: that world governments facilitate continual transfer of wealth from the poor to the rich via inflation and taxation, redistributed to wealthy risk takers in the form of bailouts.
Hmm... given the public's general greed and myopia, would we be better off or worse off with public control of financial markets? Now there's an interesting discussion topic.
The previous quote was from the King James version. The Revised Standard Version (RSV) quotes it as,
"For the love of money is the root of all evils; it is through this craving that some have wandered away from the faith and pierced their hearts with many pangs."
I Timothy 6:10
The New American Standard Bible quotes it as,
"For the love of money is a root of all sorts of evil; and some by longing for it have wandered away from the faith, and pierced themselves with many a pang."
I think the key point of the passage is that it isn't "money" that is root of evil but the "love of money" (greed) that is the root of evil.
"For the love of money is the root of all evils; it is through this craving that some have wandered away from the faith and pierced their hearts with many pangs."
I Timothy 6:10
The New American Standard Bible quotes it as,
"For the love of money is a root of all sorts of evil; and some by longing for it have wandered away from the faith, and pierced themselves with many a pang."
I think the key point of the passage is that it isn't "money" that is root of evil but the "love of money" (greed) that is the root of evil.
Quote from darkhorse:
Hmm, not familiar with your translation, all the ones I've seen, including the NIV on my desk, have 'all kinds'. The context and the original greek is what matters most. Unfortunately I'm not a greek scholar...
That wizards of money is great! Just read part two.
Again some points of disagreement, but his general thesis is very provocative: that world governments facilitate continual transfer of wealth from the poor to the rich via inflation and taxation, redistributed to wealthy risk takers in the form of bailouts.
Hmm... given the public's general greed and myopia, would we be better off or worse off with public control of financial markets? Now there's an interesting discussion topic.