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kemoryan
Spain1506 Posts
On October 07 2008 04:54 ahrara_ wrote: If you don't know what you're talking about, stop posting like you do. seriously. it's not a hard concept to grasp. Because you watched a movie doesn't make you a goddamn expert. Dude, did you just quote and criticize yourself? | ||
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Boblion
France8043 Posts
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ahrara_
Afghanistan1715 Posts
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kemoryan
Spain1506 Posts
I watched Money as debt several times and I found it very interesting. Of course I have no degree in economics and I won't believe any conspiracy blindly. Shocking as it is, it still seems to hold some truth nevertheless. This makes you think out of the box for a while which is something we all desperately need nowadays. We're in deep shit (economic crisis) and stuff like this shouldn't be ignored like most people like to do by putting a bandage in their eyes thinking we live in a happy world and our papa bankers and governors gonna solve this. | ||
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D10
Brazil3409 Posts
On October 07 2008 06:40 ahrara_ wrote: i was referring to D10 i was just guessing. nowhere in my post i stated it was the absolute truth. thanks for pointing my mistakes in the most jerkish way possible. edit: and you make way more assumptions about my post than i did about the whole thing. | ||
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Infundibulum
United States2552 Posts
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PliX
Netherlands72 Posts
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ahrara_
Afghanistan1715 Posts
On October 07 2008 21:42 D10 wrote: i was just guessing. nowhere in my post i stated it was the absolute truth. thanks for pointing my mistakes in the most jerkish way possible. edit: and you make way more assumptions about my post than i did about the whole thing. you don't see why i would have a problem with people posting and repeating NON-FACTS? Battlecruisers have a siege mode and they can turn into robots! Also everybody knows TvP is so imbaaa! That's how ridiculous it sounds when people say "The fed prints money". | ||
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PliX
Netherlands72 Posts
The fed just types it in, goes faster that way.  | ||
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ahrara_
Afghanistan1715 Posts
On October 08 2008 06:59 PliX wrote: You are so right, the fed doesn't print money, the mint does. The fed just types it in, goes faster that way. AND THE MINT DEDUCTS THE PRINTED VALUE FROM THE TREASURY'S ACCOUNT. PLEASE READ A BOOK B4 POSTING TY | ||
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z7-TranCe
Canada3158 Posts
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geometryb
United States1249 Posts
comparative advantage: the video said that underdeveloped countries were being exploited by richer countries through trade and multinational corporations. this is untrue. International trade crushing domestic industries means that they had a misallocation of resources in the first place. Every country has a comparative advantage in something (that is a must) and they should be producing what they're good at rather than things they're bad at producing. They could then trade for the other products and both parties will benefit. Also, multinational companies "exploiting" foreigners via sweatshops is not a bad thing. Any developmental economist will tell you that is good as long as working conditions are not dangerous. The workers will start having disposable incomes, factories will be built, etc etc. The very fact that they are working there means that they are doing it willingly. loans to developing nations: loans are not made to countries so that the the wealthy countries can dick over the poorer ones. The IMF and World Bank serve as a lender of last resort when the government can't get money from anywhere else. if a country's government is broke and needs to borrow money, the IMF is the organization that needs to approve the loan before it goes to a bank like citibank. They stipulate a bunch of conditions to make sure that they can get the money back! There are much deeper reasons why some developing nations fail such as: inefficient banking system, trade barriers, lack of infrastructure, etc. resource based economy: even if people still have the incentive to work, when they have everything already provided for them (i know i won't be working. collapse of soviet union?), there is a huge problem with the allocation of resources. Resources are scarce and it's going to be really tough to figure out who gets what, or does everyone get the same? money: money has no intrinsic value because it's just fancy paper. but, we give it value by exchanging it for goods and services. this allows for efficient markets so that we can buy/sell stuff easily. it doesn't really matter how much money is in the money supply because if one day we decide to just double the money supply, prices will just double to compensate. Is it a problem that it's created through lending? This is kind of interesting and i'm kind of lazy and don't want to think about it. My first instinct is no because what would happen if we fixed the money supply at the current amount? money would continue circulating as usual. People would pay back their debts. The banks would take that +the interest as profits and spend it hiring new people and other expenditures. They would pay back the money it borrowed from the government, which in turn could use it on whatever the government spends money on (or it could show up as a budget surplus). The money would just keep circulating and the principle + debt isn't really a problem because the total money supply is the principle + debt, not just the principle. | ||
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geometryb
United States1249 Posts
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BalliSLife
1339 Posts
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Boblion
France8043 Posts
On October 08 2008 15:59 geometryb wrote: comparative advantage: the video said that underdeveloped countries were being exploited by richer countries through trade and multinational corporations. this is untrue. International trade crushing domestic industries means that they had a misallocation of resources in the first place. Every country has a comparative advantage in something (that is a must) and they should be producing what they're good at rather than things they're bad at producing. They could then trade for the other products and both parties will benefit. Also, multinational companies "exploiting" foreigners via sweatshops is not a bad thing. Any developmental economist will tell you that is good as long as working conditions are not dangerous. The workers will start having disposable incomes, factories will be built, etc etc. The very fact that they are working there means that they are doing it willingly. loans to developing nations: loans are not made to countries so that the the wealthy countries can dick over the poorer ones. The IMF and World Bank serve as a lender of last resort when the government can't get money from anywhere else. if a country's government is broke and needs to borrow money, the IMF is the organization that needs to approve the loan before it goes to a bank like citibank. They stipulate a bunch of conditions to make sure that they can get the money back! There are much deeper reasons why some developing nations fail such as: inefficient banking system, trade barriers, lack of infrastructure, etc. Comparative advantage doesn't mean that the situation is fair ( the word fair don't exist in economics ). It means the trade will be "efficient" for the two countries. Moreover " International trade crushing domestic industries" maybe means that those domestic industries weren't competitive but this will lead to a loss of technology knowledge and all the gains will benefit to the foreign firm. So in your second part when you say that trade barriers are bad you are wrong. Sometimes they are good if you want to protect a "young" industry. If you study a bit the development of Asian and African countries you will understand. | ||
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geometryb
United States1249 Posts
import substitution is always going to make the country worse off. there are some pros for it, but it is pretty well understood that protecting infant industries isn't a valid reason for trade barriers because protected industries are always going to be an inefficient misallocation of resources. There's also no real reason to think that a country will one day gain the comparative advantage in one product so the government should prop that industry up until it does. You might be confused that just because an country has a comparative advantage/disadvantage they are producing all of one thing and none of the other. There will always be some imported and the gap between amount imported and amount demanded will be domestically produced. some of the reasons for it are: developing countries use it for tax revenue because they dont have any income to tax (which might be what you're talking about in africa and asia); helps solve chronic balance of payment problems, industrial self reliance/control over it's own economy. but those reasons aren't that great. | ||
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Boblion
France8043 Posts
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geometryb
United States1249 Posts
i dont really want you to go on some random tangent about how trade barriers are helping developing nations. edit just to get the last word: if you compare countries that globalized with countries that didn't, i think it becomes pretty clear that countries that reduced trade barriers are doing better. | ||
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kemoryan
Spain1506 Posts
On October 08 2008 15:59 geometryb wrote: Is it a problem that it's created through lending? This is kind of interesting and i'm kind of lazy and don't want to think about it. My first instinct is no because what would happen if we fixed the money supply at the current amount? money would continue circulating as usual. People would pay back their debts. The banks would take that +the interest as profits and spend it hiring new people and other expenditures. They would pay back the money it borrowed from the government, which in turn could use it on whatever the government spends money on (or it could show up as a budget surplus). The money would just keep circulating and the principle + debt isn't really a problem because the total money supply is the principle + debt, not just the principle. The problem you fail to see is that in order to pay the deficit caused by the interest, new loans must be taken provided that all money was already created through loans. On the long run, that brings us to an exponential growth of debt + need of more goods/services for the loans to be made. That would be possible in a world with infinite resources, but that's not our case, right? | ||
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geometryb
United States1249 Posts
so the total money created = principal + interest. | ||
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