On May 26, 12:15*pm, Michael Coburn wrote:
On Wed, 26 May 2010 07:10:23 -0700,snakehawkwrote:
On May 26, 8:37*am, "Fred B. Brown" wrote:
"?baMa? Tse Dung" wrote in

...







In a recent article at the Huffington Post, Lynn Parramore assembled
a team of economists to refute nine "myths" about the deficit. On the
one hand, it was refreshing to see these economists discuss with such
candor the fact that our financial system is backed up by nothing but
green pieces of paper. On the other hand, it was shocking to see
these economists laud the fact.

Read mo HuffPo Abolishes Scarcity - Robert P. Murphy - Mises Daily

http://mises.org/daily/4349

Arianna Stasinopoulos Huffington is a 'real' financial expert. She's a
Greek Socialist emigrant, considering that the Greek economy is
collapsing I take what she has to say with a grain of salt.

At least consider the underlying theme--that government has a duty to
provide sufficient money to sustain the economy, and that government is
the source of money. *When an economy has the potential for expansion,
the government should make additional money available. *The government
should curtail spending and reduce the money supply only when the
economy is at maximum production and more money simply leads to
inflation.

Thank you for renewing my faith in the ability of the people in the USA
to THINK and reason.

The Republicans have it all backwards. *The Bush administration not only
spent money like drunken bank robbers, they also spent the money of
useless wars and overseas adventures. *They not only opened the money
vaults to big business, they also shoveled the money to nonproductive
investment banks, hedge funds, and international gamblers.

Yup. *The Republican goal has always been the destruction of government.. *
They have attempted doing so by destruction of the currency and by
creating massive debt.

The Republicans kept a loose money policy even while America's
production facilites were being transferred overseas and America'
manufacturing base was shrinking. *The result was the collapse of the
United States monetary system and the economy.

It hasn't collapsed YET. *The Republicans are into that part of the plan
at this point.

And now that crippled US economy is rebounding and more money is needed
to fund the expanding activity, the Republicans oppose government
spending and expanding the money supply, the exact opposite of what is
needed right now. *The spendthrift Republicans who allowed international
money changers to scoop up and gamble away most of the available cash
have now become thrifty nannies who think the way to prosperity is for
government to sit back and allow the international bankers to control
the rate of America's recovery.

They WANT a depression where the rich Republicans that were awarded all
the money by the Republican government can lord it over the productive
servants. *The proper way forward is a devaluation of the money by
printing more of it and a tax system that keeps this new money out of the
hands of the current money holders (the Republican thieves).

No need to devalue the currency. Inflation only occurs when the money
supply exceeds the nation's ability to expand production. Right now
the United States is operating at a fraction of its ability to
produce, mainly because of the shortage of available cash caused by
eight years of Republican mismanagement and the profligacy of
international money shufflers.

What most people don't realize is how much capital simply disappeared
in the hectic gambling antics of the big investment banks and hedge
funds. The notional value of all those wierd derivative trades
amounted to tens of trillions of dollars.

The big Wall Street gamblers borrowed gobs of money from the
commercial banks--represented by account entries--then lost it and
reneged on paying the commercial banks back--represented by account
entries--leaving the commercial banks with little capital and books
full of bad loans. The effect was that gobs of money was taken out of
commerce and effectively lost to commerce and industry.

Now the government must make new capital available to commerce and
industry to allow the economy to recover. And the same people
responsible for the near collapse are standing in the way of recovery
by demanding that the government stop injecting needed currency into
the economy.