Central banks join forces to ease financial strains aka World Banks are going to come together
33 replies, posted
[QUOTE=Madman_Andre;33507160][Insert Alex Jones NWO Conspiracy Theory Here][/QUOTE]
[video=youtube;LhqUk28OwHs]http://www.youtube.com/watch?v=LhqUk28OwHs[/video]
[QUOTE=Hidole555;33516637]You are trying to base economic success and inflation off of what a dollar should represent. In both systems, inflation is caused by the excessive growth of the supply of money, determined by the decisions of the individuals in charge of the production of money. A recession is a matter of GDP, goods and services produced in a country. The way to tackle falling GDP is to enact legislation or other initiatives that will get the people working. This usually means ensuring that the unemployed shall become employed, as worker efficiency is up to the employee to provide, and the employer to enforce (within reason.)
[/QUOTE]
1) inflation is caused by excessive purchasing and demand which drives up prices, it doesn't have anything to do with the supply of money. if excessive demand drives up prices, and nobody can print more currency, then you're headed straight into a recession. now if you're in recession in a commodity-backed system, then you end up like Greece, where if they were on their own currency, then they would deflate it, but because they cannot control the value of the euro, they don't have a lot of choices as to what they can do
2) I don't see what that proves. My point was that banks borrow much more from each other than the fed, which is true - why would they borrow from the fed and pay more interest when they can borrow from another bank for a lower interest rate
3) But there are safety nets implemented in today's system that basically prevents bank runs from happening - the video claims that bank runs will lead to a depression. That's simply not true.
4) I don't see the relevance
5) I think you misunderstood me, I meant that banks are carrying too much cash in their vaults, and they're not so willing to loan it out anymore, contrary to what this video claims
6) I don't see how that counters what I said
[editline]wef[/editline]
still don't like the video - I just can't get over the fact that it suggests a commodity-backed currency throughout, which I completely disagree with
This is why we need a world economy and government, not a bunch of scattered countries that always have distrust for each other.
Sorry, you need to Log In to post a reply to this thread.