Systems

first of: “economics” is where “believe” and “science” meet.

Often it is not clear, what parts of economics is “real science” and what is “make believe”.

What is for sure: all “modern” monetary systems are FIAT systems,

this means, some entity (state or bank, usually “independent” bank of banks)

  • prints an undefined amount of money (cash)
    • as much as it deems to achieve it’s goals
      • goals could be:
        • 0% unemployment
        • 2% inflation
        • reversal of climate change
        • peace & prosperity for all or just for the top 0.1%
        • what have you
  • it loans/lends that cash to private banks
    • the private banks are (supposed) to lend to productive citizens, that actually give the money it’s value, by adding value to society
      • by designing, building, creating, (mass) production of clever, innovative products & services that help people
        • stay alive & healthy
          • clean water & food
          • healthcare
        • get to work or to visit someone
          • transport
        • communicate
          • phones, computers, wires that connect computers…

So ask yourself: What gives money it’s value?

As it has no intrinsic value (it is not gold and since the 70s the US-$ is (thanks to Nixon and the Vietnam war) not linked to gold anymore).

The German Mark after ww2 was one of the first FIAT systems, economists predicted it will never work.

But it worked, because Germans worked hard for that paper money, even if it can not be converted to Gold or Silver or “guaranteed amount of bushels of grain” or this or that product of scarcity (that in the terms of grain, actually provide some purpose).

So does printing more money cause inflation?

Sure it does.

Ask yourself: What does a bank produce?

Actually a bank produces only one thing: loans.

If it does not produce loans, it’s like a factory with no output (lost it’s purpose).

The question is: If the banks fail at their core task, can the state step in, and lend money to citizens that want to create those innovative products = jobs?

Also What is the best way to battle inflation?

Imho it would be:

  • a actually working banking system that actually produces loans into the hands of innovative (entrepreneurship) citizens that want to add value
    • if the state does not want to take over that role, it needs to force banks to do their job properly

second best fix:

  • increase the price for money
  • aka increase the price for borrowing money (if something costs nothing it’s not worth anything?) aka increase central bank interest rates on that central bank money (Russia currently has 15.90% Inflation and a central bank interest rate of 9.50% (https://tradingeconomics.com/matrix)

Thatcher did that it was not pretty.

Buying and selling stocks or real estate, is not investment, it’s speculation (not adding value to society in any sense).

The No.1 cancer enemy of society is: corruption.

It is in the West  – it is (more obvious) in the East.

 

In the end this is Western cleptocracy vs Eastern oligarchy (cleoptocracy = oligarchy = when the super rich are in power)

There are very well trained doctors & intellectuals in Turkey (esp in the larger cities), while the countryside’s is still in the middle ages?

Double extremist standards:

While supporting ISIS Erdogan’s Turkey declares anyone that is agains him as a terrorist (sounds familiar? Mr Bush?) and demands (in this case Sweden) to extradite “the top 10” of the opposition abroad.

https://nypost.com/2019/09/21/why-isnt-the-media-covering-turkish-president-erdogans-ties-to-isis/

Whoever allowed Turkey into NATO (EU application failed) & Orban’s Hungary into EU is a good damn moron.

Both are corrupt egoistist that only care about their interest playing everyone like a violin while (of course) never having to stand trial.

simply run a search on Erdogans son

https://www.theportal-center.com/2019/04/erdogans-son-in-laws-corruption-speaks-volumes-about-turkey/

Or a search on Orbans closest political allies and homosexual gang bang drug parties in Brussels.(During corona lockdown!!!)

So: either remove Orban & Erdogan – or remove Orban from EU and Turkey from NATO, doing more harm than good.

Or even better: start something new that does not repeat those mistakes.

"An error doesnt become a mistake" John F. Kennedy OC
“An error doesnt become a mistake” John F. Kennedy OC

 

 

do smart phones make mankind smart?

no of course not.

thanks to capitalism, everyone has developed into maximally individual assholes

better technology, does not mean “better people culture” (ethical, moral, social competence)

mankind has a culture crisis

all the other crisis directly stem from this crisis

it’s no fun

everyone could develop as human being

but those most successful in capitalism actually stop developing as human beings because “why change? the banks love me”

everyone can do something, everyone could contribute something to society

but the current system does not value it

it (wrongfully) “values” the evil doers

and there we are, “stuck” with people you won’t want to spend time with and loads of evil & unsolved problems