The Mandrake Mechanism & Banking Reform

[jficquette]

All I mean is that if we had a balanced budget and taxes based on consumption with no income tax or some type of flat tax then we would take away the punch bowl from the politicians who spend money to get votes.

Having a balanced budget would be the same as have a gold standard in some ways because you could only expand the budget based on economic activity and not just to pander to the masses. With a balanced budget you would have no reason for the government to borrow money. Borrowing money is the transaction that prints money. You can’t create money without creating debt.

I guess I am saying its not the fiat currency system its the politicians who take advantage of it and they only take advantage of it because it works for them. There are no restraints to how much debt they can pile on because we don’t require a balanced budget.

John

[Carl Veritas]

Informed Polity?

http://www.mises.org/story/2837

Josh, the Mexican government defaulted on their bonds
and the large NY banks were holding a chunk of it.

The Fed performed for its creators and bailed them out. But bailing the banks, sticking the bill to the American taxpayer while labeling the action as a matter of national emergency needed political and intellectual cover. It was a grandslam right over the peoples heads.

An informed electorate is key, I agree.

But most members of the media and congress all the way up to the white house were drinking from the same punch bowl served at American universities.

How do we fix that?

[Carl Veritas]

Informed Polity?

http://www.mises.org/story/2837

Josh, the Mexican government defaulted on their bonds
and the large NY banks were holding a chunk of it.

The Fed performed for its creators and bailed them out. But bailing the banks, sticking the bill to the American taxpayer while labeling the action as a matter of national emergency needed political and intellectual cover. It was a grandslam right over the peoples heads.

An informed electorate is key, I agree.

But most members of the media and congress all the way up to the white house were drinking from the same punch bowl served at American universities.

How do we fix that?

[Carl Veritas]

Informed Polity?

http://www.mises.org/story/2837

Josh, the Mexican government defaulted on their bonds
and the large NY banks were holding a chunk of it.

The Fed performed for its creators and bailed them out. But bailing the banks, sticking the bill to the American taxpayer while labeling the action as a matter of national emergency needed political and intellectual cover. It was a grandslam right over the peoples heads.

An informed electorate is key, I agree.

But most members of the media and congress all the way up to the white house were drinking from the same punch bowl served at American universities.

How do we fix that?

[Carl Veritas]

Informed Polity?

http://www.mises.org/story/2837

Josh, the Mexican government defaulted on their bonds
and the large NY banks were holding a chunk of it.

The Fed performed for its creators and bailed them out. But bailing the banks, sticking the bill to the American taxpayer while labeling the action as a matter of national emergency needed political and intellectual cover. It was a grandslam right over the peoples heads.

An informed electorate is key, I agree.

But most members of the media and congress all the way up to the white house were drinking from the same punch bowl served at American universities.

How do we fix that?

[Carl Veritas]

Informed Polity?

http://www.mises.org/story/2837

Josh, the Mexican government defaulted on their bonds
and the large NY banks were holding a chunk of it.

The Fed performed for its creators and bailed them out. But bailing the banks, sticking the bill to the American taxpayer while labeling the action as a matter of national emergency needed political and intellectual cover. It was a grandslam right over the peoples heads.

An informed electorate is key, I agree.

But most members of the media and congress all the way up to the white house were drinking from the same punch bowl served at American universities.

How do we fix that?

[barnaby33]

A basic course on money and credit is a good start. High school econ courses are almost totally useless. I don’t remember a single thing from them. In the short term there isn’t a fix. That’s the whole point. If the people aren’t honest, their politicians won’t be either. I really am disgusted when I hear people blame the gov. There are always corrupt people and institutions. Spotting them and making sure they don’t multiply is the job of an informed populace.

Of course we don’t have that, which is the root of the problem. So for the next decade or so, we are going to suffer first deflation (occurring now) then inflation. Maybe next cycle we’ll get a bit smarter, but I wouldn’t count on it.

[barnaby33]

A basic course on money and credit is a good start. High school econ courses are almost totally useless. I don’t remember a single thing from them. In the short term there isn’t a fix. That’s the whole point. If the people aren’t honest, their politicians won’t be either. I really am disgusted when I hear people blame the gov. There are always corrupt people and institutions. Spotting them and making sure they don’t multiply is the job of an informed populace.

Of course we don’t have that, which is the root of the problem. So for the next decade or so, we are going to suffer first deflation (occurring now) then inflation. Maybe next cycle we’ll get a bit smarter, but I wouldn’t count on it.

[barnaby33]

A basic course on money and credit is a good start. High school econ courses are almost totally useless. I don’t remember a single thing from them. In the short term there isn’t a fix. That’s the whole point. If the people aren’t honest, their politicians won’t be either. I really am disgusted when I hear people blame the gov. There are always corrupt people and institutions. Spotting them and making sure they don’t multiply is the job of an informed populace.

Of course we don’t have that, which is the root of the problem. So for the next decade or so, we are going to suffer first deflation (occurring now) then inflation. Maybe next cycle we’ll get a bit smarter, but I wouldn’t count on it.

[barnaby33]

A basic course on money and credit is a good start. High school econ courses are almost totally useless. I don’t remember a single thing from them. In the short term there isn’t a fix. That’s the whole point. If the people aren’t honest, their politicians won’t be either. I really am disgusted when I hear people blame the gov. There are always corrupt people and institutions. Spotting them and making sure they don’t multiply is the job of an informed populace.

Of course we don’t have that, which is the root of the problem. So for the next decade or so, we are going to suffer first deflation (occurring now) then inflation. Maybe next cycle we’ll get a bit smarter, but I wouldn’t count on it.

[barnaby33]

A basic course on money and credit is a good start. High school econ courses are almost totally useless. I don’t remember a single thing from them. In the short term there isn’t a fix. That’s the whole point. If the people aren’t honest, their politicians won’t be either. I really am disgusted when I hear people blame the gov. There are always corrupt people and institutions. Spotting them and making sure they don’t multiply is the job of an informed populace.

Of course we don’t have that, which is the root of the problem. So for the next decade or so, we are going to suffer first deflation (occurring now) then inflation. Maybe next cycle we’ll get a bit smarter, but I wouldn’t count on it.

[Author]

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