Wednesday, September 1, 2010

Warren Mosler Right On The Money

Warren is a brilliant economist, at first I doubted his wisdom because it has all the attributes of a cruel paradox. Then I realized that Warren is spot on. Our deficit does not matter because it has "NO VALUE" our Dollar is nothing more than paper and ink and our debt could be eliminated by losing electricity and having those computer digits die in the circuits that created them.

Money is nothing more than a tool to allow our government to exchange something of no value (Paper and Ink) for something that has value your goods and services of which the government wants. The purpose of the Fiat monetary system is to use the money supply M3 as a counterweight to the demand for money of which the government can create at will with the stroke of a computer number pad.

Some believe that this is immoral, because they (like me) object to the Government (possibly corrupt) having absolute control and power over money creation, especially when that money is used as a means to expand the government with impunity over the rights and will of the people. Some feel that having a bit of a monetary challenge to the government would be good for our republic, or in other words require the government to have money backed by something of value like a commodoty of sorts. This will guarantee that the people of America will also benefit from new money creation not just the swiss press and paper & ink industry.

Pesonally I believe and have confidence that Warren can make the current FIAT system work and I agree with Ron Paul that our government (through its incompetence) should be forbidden from abusing the currency through erratic inflation, deflation and its induced economic booms and busts like we are experiencing now.

I think Warren is one of the only people I know that can restore balance to our economic system that deperately needs to be "papered over" properly. If any of you are worried about your money being worth anything remember that you can buy Gold, Silver or some other rapidly appreciating commodoty you need not be "Papered up" yourseves. The wealthy elite do this frequently because they (unlike the masses) know (and laugh at) paper money when regarded as something of value. To them it is little more than a permission slip or for lack of a better description "casino points or credits" that can be used for merchandise.

Warren has also indicated that the IRS places so little importance on cash as money that if you dare pay your taxes in cash, they will carefully count it, give you credit (a reciept), and after you leave drop the entire pile in their shredder. Those shreds are then happily resold to tourists visiting Washington D.C.

1 comment:

Warren Mosler said...

Thanks, Rocco!

my 7 Deadly Innocent Frauds of Economic Policy can be downloaded here: