Follow @PoliticsIE
 
 
 
Page 1 of 18 1234511 ... LastLast
Results 1 to 10 of 175

Thread: Saying "The money needs to come from somewhere" betrays deep ignorance about what money is

  1. #1
    Politics.ie Member
    Join Date
    Dec 2006
    Posts
    4,996
    Mentioned
    0 Post(s)

    Default Saying "The money needs to come from somewhere" betrays deep ignorance about what money is

    I saw this comment, and I thought it's indicative of not being accurately informed:

    "Well, the budget needs to be balanced. Whether it's spending cuts or tax increases, I'm not disagreeing with the idea that the money needs to come from somewhere."

    In medieval times, people thought that bees came from dead farm animals. They observed that whenever one came across the cadaver of any animal that had been dead for a while, there were always bees buzzing and crawling around it. So they put two and two together and got 57.

    The modern version of this misconception is the quote above and the variants of it that constitute 80% of the posts on this website.

    For every ordinary Joe anywhere (both those with no interest in doing some research to challenge their own presumptions, and also those willing to read a bit) it's indeed true that any money they have, they need to get from some other entity. Either the dole, or salary, or inheritance. So people like the poster above make the wrong assumption that you can broaden that out to all money.

    But money isn't actually like that. Money is like the words on this page. I didn't have to "take" these words from somewhere else to put them here. I just pressed keys in a given order and the words appeared.

    Money is created the same way, by means of computers used by people with government-issued licenses to issue credit. In this country and the rest of the Eurozone, the principal legal credit-issuer is a chap called Mario Draghi. Every day, his employees create tens of millions of Euros. No, not notes and coins. Do you know many people who paid for their houses with only notes and coins? You don't need notes and coins to have money. The vast majority of the world's money transactions don't involve a single note or a lone brass penny.

    Where do Mario's men take the money from to issue it as credit? Nowhere. They just issue it.

    It might be worthwhile to post a link to this OP the next time some uninformed person posts yet another repetition of the false statement above.

    Some fool mentioned Zimbabwe and showed a multi-trillion dollar note, as if this proves something we didn't know. It's true that in 3rd world economies and war-ravaged western ones, a process called hyperinflation can occur. But it's not exactly what you'd call inevitable. Ever seen a non-doctored picture of a 50 trillion Swiss Franc note or a 100 trillion pounds sterling note?

    Me neither. And guess what: you never will.
    Last edited by feargach; 8th May 2013 at 09:55 AM.
    When you see the words "Mises" or "Hayek" in someone's post, just ask yourself: do I really want to ban paper money and go back to gold?

    You have to pity the kind of people who buy into conspiracy theories. I find the following to be the saddest words on the internet: "Re: connection between Bilderberg puppet lady gaga and viral outbreak in ukraine "

  2. #2
    Politics.ie Member
    Join Date
    Jul 2011
    Location
    Dublin
    Posts
    26,299
    Mentioned
    0 Post(s)

    Default

    I so wanted to like that OP,

    But alas, as I got to the end, I realised that the person telling others that they are ignorant, was himself, ignorant,

    The stuff produced by Mario and Ben isn't money mate,

  3. #3

    Default

    Fiat money is toilet paper.

  4. #4
    Politics.ie Member
    Join Date
    Feb 2013
    Posts
    4,226
    Mentioned
    0 Post(s)

    Default

    Not much point in working to earn money, if some Fairy Godmother will print some and lend it to your neighbours, (who will never pay it back), to compete against you, to buy the goods, you wish to buy, devaluing the money you have already earned and saved.

    Pretty soon you would wonder if you too, could give up work ,and just get serial loans, that you would never have to pay back!

    Pretty soon every one would figure working was a mugs game!

  5. #5
    Politics.ie Member daveL's Avatar
    Join Date
    Oct 2010
    Posts
    19,569
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by feargach View Post
    I saw this comment, and I thought it's indicative of deep, bottomless ignorance:

    "Well, the budget needs to be balanced. Whether it's spending cuts or tax increases, I'm not disagreeing with the idea that the money needs to come from somewhere."

    In medieval times, people thought that bees came from dead farm animals. They observed that whenever one came across the cadaver of any animal that had been dead for a while, there were always bees buzzing and crawling around it. So they put two and two together and got 57.

    The modern version of this misconception is the quote above and the variants of it that constitute 80% of the posts on this website.

    For every ordinary Joe anywhere (both those with no interest in doing some research to challenge their own presumptions, and also those willing to read a bit) it's indeed true that any money they have, they need to get from some other entity. Either the dole, or salary, or inheritance. So people like the poster above make the wrong assumption that you can broaden that out to all money.

    But money isn't actually like that. Money is like the words on this page. I didn't have to "take" these words from somewhere else to put them here. I just pressed keys in a given order and the words appeared.

    Money is created the same way, by means of computers used by people with government-issued licenses to issue credit. In this country and the rest of the Eurozone, the principal legal credit-issuer is a chap called Mario Draghi. Every day, his employees create tens of millions of Euros. No, not notes and coins. Do you know many people who paid for their houses with only notes and coins? You don't need notes and coins to have money. The vast majority of the world's money transactions don't involve a single note or a lone brass penny.

    Where do Mario's men take the money from to issue it as credit? Nowhere. They just issue it.

    It might be worthwhile to post a link to this OP the next time some uninformed person posts yet another repetition of the false statement above
    .
    why? It's not that good nor that enlightening.

    Get over yourself.

  6. #6
    Politics.ie Member
    Join Date
    Jul 2010
    Posts
    8,753
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by feargach View Post
    I saw this comment, and I thought it's indicative of deep, bottomless ignorance:

    "Well, the budget needs to be balanced. Whether it's spending cuts or tax increases, I'm not disagreeing with the idea that the money needs to come from somewhere."

    In medieval times, people thought that bees came from dead farm animals. They observed that whenever one came across the cadaver of any animal that had been dead for a while, there were always bees buzzing and crawling around it. So they put two and two together and got 57.

    The modern version of this misconception is the quote above and the variants of it that constitute 80% of the posts on this website.

    For every ordinary Joe anywhere (both those with no interest in doing some research to challenge their own presumptions, and also those willing to read a bit) it's indeed true that any money they have, they need to get from some other entity. Either the dole, or salary, or inheritance. So people like the poster above make the wrong assumption that you can broaden that out to all money.

    But money isn't actually like that. Money is like the words on this page. I didn't have to "take" these words from somewhere else to put them here. I just pressed keys in a given order and the words appeared.

    Money is created the same way, by means of computers used by people with government-issued licenses to issue credit. In this country and the rest of the Eurozone, the principal legal credit-issuer is a chap called Mario Draghi. Every day, his employees create tens of millions of Euros. No, not notes and coins. Do you know many people who paid for their houses with only notes and coins? You don't need notes and coins to have money. The vast majority of the world's money transactions don't involve a single note or a lone brass penny.

    Where do Mario's men take the money from to issue it as credit? Nowhere. They just issue it.

    It might be worthwhile to post a link to this OP the next time some uninformed person posts yet another repetition of the false statement above.
    You're right, lets just crank up the printing press, we can print all the money we need. If people start to lose faith in the currency and start doing business through alternative means of exchange, we can just lock them up. What could possibly go wrong?????

    Last edited by pragmaticapproach; 27th April 2013 at 03:49 PM.

  7. #7
    Politics.ie Member parentheses's Avatar
    Join Date
    Aug 2011
    Posts
    13,371
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by IbrahaimMohamad View Post
    Not much point in working to earn money, if some Fairy Godmother will print some and lend it to your neighbours, (who will never pay it back), to compete against you, to buy the goods, you wish to buy, devaluing the money you have already earned and saved.

    Pretty soon you would wonder if you too, could give up work ,and just get serial loans, that you would never have to pay back!

    Pretty soon every one would figure working was a mugs game!
    You're describing Ireland during the boom!

  8. #8
    Politics.ie Member Spanner Island's Avatar
    Join Date
    Feb 2011
    Posts
    23,371
    Mentioned
    0 Post(s)

    Default

    Fiat money + QE/Printing and we may as well transact using Monopoly money...

    The OP seems to be oblivious to this...

    Still... it is funny how the world participates in this charade every day...

  9. #9

    Default

    Quote Originally Posted by R3volution_R3ady View Post
    Fiat money is toilet paper.
    Perhaps, but then you might raise a small objection if your boss were to pay next months salary in sheets of Andrex ?

    Come back and talk to us after the Gold standard is reintroduced or perhaps we might innovate, a Lithium standard anyone ?
    Best regards, Pat.Twitter-energy economy news _ _ Each to their ability, together we progress.

  10. #10
    Politics.ie Member
    Join Date
    Jul 2011
    Location
    Dublin
    Posts
    26,299
    Mentioned
    0 Post(s)

    Default

    The solution to printing money.....

    is printing guns,

    Don't ye just fckn love tech nerds,

Page 1 of 18 1234511 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •