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Cardiff By The Sea, CA
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Registered Sep 29, 2009
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ska's most recent comments:
- On 3 Mar 2011
in
Proving the Teabaggers are full of crap in a single graph,
ska said:
I believe government spending is counted as part of GDP. So even if the government takes all your money, as long as they turn around and buy pencils for bureaucrats and new cars and such, the tax/GDP representation will not reflect the full effect. In fact wouldn't the graph be the same if 25% of the population were enslaved to the government by 100% taxation and the government comprised the remaining part of the economy, buying and selling w/o taxation?
Not entirely sure on this, but its a reasonable hypothesis to explain the flat line on the graph in light of the massive role the govt is playing in the economy.
Or perhaps its the deficit financing that's keeping it flat and the trillion the chinese haven't asked us to pay back yet. - On 21 Feb 2011
in
Gold forbidden as currency by IMF?,
ska said:
Yes Patrick banks would then charge a small storage fee. GoldMoney operates this way now.
MarkinSF, Yes people would use demand accounts for their monthly needs and put the rest in longer-term deposits. I don't think those would be similar to savings accounts as they function today, since today they are treated essentially as demand deposits. Money that banks lend out from savings should be less liquid, less liquid on a time scale similar to the payment schedule of those that the bank is lending that money out to. What that means in practice, I'm not sure, but if a bank has lent your money out it shouldn't be able to return it to you on demand. If its both lent out and available on demand then its duplicated (i.e. two people now have a claim on the gold behind those paper contracts). Furthermore that's a fraud that gets magnified dramatically through the banking system if allowed by law. - On 21 Feb 2011
in
Gold forbidden as currency by IMF?,
ska said:
Getting back to your questions about paper Patrick, the solution is a return to hard currency and at the same time criminalizing fractional reserve banking. As long as banks are required to keep 100% reserves on demand deposits, then the circulating paper and electronic credit have gold behind them. As far as lending goes, that would be backed as well insofar as a bank couldn't lend out money that hadn't been lent to them by long-term deposits, CDs etc. Banks should operate like grain elevators, only lending grain they have and required to keep whatever is deposited in demand accounts. There would still be risk associated with fraud and or bad investments and bankruptcy, by the risk wouldn't be in the nature of banking itself, but in deviations/criminal actions.
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