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Warp wrote:
> At its core, capitalism is about free commerce, and it's precisely free
> commerce which keeps the cash flowing.
The current economic crisis in America is caused precisely by capitalism
applied to that which isn't capital. The money here isn't real money.
There's no "cash" flowing. All money is created as debt. When you go to the
bank with your house or business (which is actual *capital*), you get money
by taking out a loan based on a note, usually with a mortgage[1] attached.
However, the money the bank gives to you is also a loan. So what they hand
you is a note, in particular, a Federal Reserve Note. You go to the bank,
and they say "I'll promise to pay you some money in the near future if you
promise to pay me more money in the more distant future."
Capitalism works well when restricted to capital. When you start calling
notes, derivatives, options, and insurance policies "capital" you start
getting into a crisis. The accounting books said the money that was owed
back to the banks was some thousands of times the GDP of the entire world
combined. That isn't capital. There's nothing real and of value you can
create with those numbers. You can't rent it out, or build a car with it.
The hundreds of billions of dollars of "money" being given to the banks
isn't "real" either, which is why we're not seeing tremendous price
inflation in spite of huge amounts of money supply inflation.
If money isn't subject to capitalism, then you get things like this economic
crisis and the 1929 depression. When different banks issue their own money
competitively, then banks with bad business practices and which take risks
too large don't get many customers, so their failure is not more problematic
than one stock tanking.
[1] - Loan = "bank promises to give money to whoever you write a check to".
Mortgage = "You give the bank your house if you don't pay back the loan as
specified in the note." Note = "We promise to give you money in the future."
--
Darren New, San Diego CA, USA (PST)
"We'd like you to back-port all the changes in 2.0
back to version 1.0."
"We've done that already. We call it 2.0."
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