Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality

Iraq Dinar/News is a popular topic among many topics this board offers.

See the footer of the board for our Facebook and My business pages.

Be sure and join our Dinar Only Newsletter Email list. It is located on the right. Your User Account Email when joining the board is for with in Neno's Place use of board information which you can control in your profile settings.

Neno

NOTES:
For "Advertising" with in my board to our Membership and Visitors see our "Sponsor Ad Info" in the Navbar. Neno's Place receives a low of 50,000 views a week to over 100,000 plus many times thru out the year.

I can be reached by phone or text 7am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.
Established in 2006 as a Community of Reality

Longest Dinar holding Community. Reach Admin by Private Message. Copyright © 2006-2017


Money Is Also Perishable – Debasement & Devaluation Easier Than Taxing or Defaulting

Share

Lobo
Moderator
Moderator

Posts : 18037
Thanked : 883
Join date : 2013-01-12

Money Is Also Perishable – Debasement & Devaluation Easier Than Taxing or Defaulting

Post by Lobo on Mon 02 Nov 2015, 10:58 am

Money Is Also Perishable – Debasement & Devaluation Easier Than Taxing or Defaulting

Posted on November 2, 2015 by Martin Armstrong

QUESTION: Martin; Why in the world anyone would invest in government debt when they all default in the end?
GH
ANSWER: Honestly, most people are oblivious to the fact that governments always default in modern times. Jean Baptiste Say took the position that a rational businessman will never hoard money because of inflation and he will promptly spend any money he gets “for the value of money is also perishable.” (“A Treatise on Political Economy”, Book I Chapter XV, 1803 id/138–9). Before modern times, money was ALWAYS debased or devalued as a means of paying expenses. It was easier to do this, even when using metal for coins, than to tax or borrow.

In the modern era, the princes of Europe began to borrow money and quickly learned to imprison and default on their bankers. Edward I of England borrowed from the Jews, and when he could not repay, he suddenly discovered that they were Jewish and banned them from England while not allowing them to take property.
Honestly, it is just insane. They do not do their research and governments are always responsible for creating wars and destroying the savings of the people. Adam Smith in his 1776 “Wealth of Nations” expressed it best.

We are just fools. We insanely believe that we can create change by replacing one politician with another. The ONLY possible way to achieve change is to change the very system of how government functions. Until we are prepared to do that, suck it up, for your future belongs to the madness and corruption of politicians.
This entry was posted in Q&A and tagged Adam Smith, debasement, Government Debt, Jean Baptiste Say by Martin Armstrong. Bookmark the permalink.

CITEX
Insane Investor
Insane Investor

Posts : 889
Thanked : 156
Join date : 2012-12-20
Age : 48
Location : Grapevine Texas

Re: Money Is Also Perishable – Debasement & Devaluation Easier Than Taxing or Defaulting

Post by CITEX on Mon 02 Nov 2015, 1:43 pm

An Ounce of gold will purchase almost the same amount of goods as it did 2000 years ago, devaluation (is that's a word) has always been a way to raise taxes without requiring a vote. Same as printing more cash into circulation. There is a reason it takes certain actions before a public company can just add more stocks available, those folks understand that this is theft from their existing stock holders value... printing cash is absolutely no different.

    Current date/time is Fri 09 Dec 2016, 11:15 am