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Post by Tamrin on Jan 16, 2012 17:48:28 GMT 10
Who or what should be establishing that measure of value? It's being done now. Regretfully the real values of currencies are distorted by speculation.
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Post by brandt on Jan 17, 2012 1:06:54 GMT 10
I imagine it is being done now. That is immaterial to the question though. Who or what should be establishing that measure of value? Who actually does it?
Currencies, or any other commodity that can be traded, will always be worked by speculators. That isn't odd.
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Post by Azaziel on Jan 17, 2012 15:21:25 GMT 10
Me of course, with my usual cut ;D
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Post by Tamrin on Jan 17, 2012 16:00:36 GMT 10
I imagine it is being done now. That is immaterial to the question though. Who or what should be establishing that measure of value? Who actually does it?
Currencies, or any other commodity that can be traded, will always be worked by speculators. That isn't odd. Not odd but regretful. Where speculation by currency traders (including some central banks) carries currency prices too far from their real value, eventually that bubble will burst.
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Post by brandt on Jan 17, 2012 17:16:37 GMT 10
Burst or correct? In any case, who or what sets the value of money?
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Post by Tamrin on Jan 17, 2012 17:36:29 GMT 10
Burst or correct? In any case, who or what sets the value of money? Bursts! Often resulting in a huge counter-reaction the other way. Some central banks fix prices. Floating Currencies are traded ostensibly on the perceived value of their economy over money supply. BTW, the main increase to the money supply isn't from governments but from financial institutions lending in excess of assets.
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Post by brandt on Jan 18, 2012 1:11:47 GMT 10
Fractional reserve banking, the key to the socialist paradise.
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Post by Tamrin on Jan 18, 2012 9:38:38 GMT 10
Fractional reserve banking, the key to the socialist paradise. Yet it is more a feature of unregulated (free market) banking systems!?
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Post by brandt on Jan 18, 2012 12:39:32 GMT 10
Fractional reserve exists by private law of the privileged few by the Bretton Woods meeting, which some few deluded individuals celebrate, which destroys the ideas of private property and personal freedom and I suspect that was the point.
Free market would not be controlled by a government fiat or a private corporation given unregulated and unaccounted government power. That would stop the presses though to get rid of that. Some people need masters to feel safe and comfortable.
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Post by Tamrin on Jan 18, 2012 13:31:29 GMT 10
Fractional reserve existed long before the Bretton Woods meeting of 1944 (it was a major factor leading to the Great Depression of the 1930's).
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