Understanding How Beliefs Progress: Money

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As discussed in our previous article, society improves as the backward notions clouding the thinking of ordinary people, gradually make way for the progressive ideas that liberal professors say they believe once they’re safely tenured.

Money is an excellent example of this; until quite recently, people used rock for money. To a modern person, this seems like an obvious idea, as rock is plentiful and thus money would never be in short supply. But no; the capitalist class stopped the poor having all the money they could dig, by insisting the money rock be of a certain type†. Needless to say, this “moneyrock” was rare and only the rich could afford much of it. This rock had to be painstakingly mined, almost always by minorities in dangerous conditions. Also needless to say, only the rich could afford to own these “gold” or “silver” mines.

Throughout history, progressive leaders have tried to alleviate the poverty of their citizens by demonstrating that paper made better currency than shiny rock, but their efforts were thwarted – again and again – by capitalists. Making prices rise (a process called “inflation”) these selfish profiteers forced governments to print more currency so their citizens could still afford to purchase the basic goods they needed to survive. But capitalist greed is infinite, and – inevitably – they made prices rise faster than the government’s printing presses could keep up, and the currency underwent “hyperinflation” and collapsed once the presses either ran out of paper or exploded.

Even the printing presses in relatively modern times were unable to keep pace with the profiteers’ greed; the famous Weimar hyperinflation in the early 1920s bears witness to this, as do various other currency collapses throughout the 20th century, as greedy capitalists subverted progressive, socialist governments’ attempts to make money more affordable.

One of the iron laws of supply and demand – one that is so basic that even conservative “economists” almost understand it – is that when there is an artificial shortage of something, it becomes artificially costly. Because money was needlessly expensive, the rich expected to be paid for lending it to people who – by definition! – needed it more than they did. This hindered commerce and wealth redistribution enormously, and has been shown by accredited economists like Paul Krugman to have been THE cause of the Great Depression.

Progressive thinkers at the time – persons like John Maynard Keynes (taking time out from his relentless campaigning for children in North Africa) – realised that interest rates were destroying capital formation, and started advocating doing away with them altogether, by the obvious means of making money more plentiful. This seemed absurd to the backward “economists” at the time (people in the “Australian School” like Mises, Rothbard & Hitler) but now, it has become such a mainstream idea that all accredited economists accept that zero (or even negative) interest rates are required to save the world’s economies from the problems that inevitably trail in the wake of unbridled capitalism; the very unbridled capitalism that dogs our attempts to create wealth even today.

Yes, it took decades, but thanks to the tireless advocacy of academics unencumbered with real-world experience, economists were – at last – able to see the future, and the future wasn’t shiny rock: the future was paper, and plastic rectangles, and bits and bytes stored on central bank hard drives. Finally: a currency for everyone, issued not in dribs and drabs by privileged, moustachio-twirling capitalist misers, but by the citizen’s own, democratically elected representatives, in virtually unlimited quantities. Finally: unlimited money for everyone. Finally: A people’s currency!

Yes, because we’re no longer obliged to carry rocks around in our pockets, money is now so cheap it’s essentially free; during the last financial crisis, the wise experts at The Federal Reserve (so-called because it is both a Federal Agency and has Reserves) were able to lend some 27 trillion dollars to privately-owned foreign banks, saving the world economy, and rescuing capitalism from itself… again. And because of ongoing developments in printing technology, and expansion of the world’s forests, we are assured by monetary authorities that they are easily capable of creating the asymptotic quantities of paper currency that will eventually become necessary to keep pace with prices, once the capitalists inevitably start making them rise.

† This is how the term “fiat currency” came into being; “fiat” means “let it be so” in Latin, as the governing classes insisted only certain rocks could be money; i.e, “I say this rock (gold and/or silver) is money”. The fact the term dates back to the Roman era just reminds us how long the ruling classes have prevented the poor acquiring their fair share of money.

jfb
jfb

An outstanding article! One of the best I have ever read here, accreditedthinker, that one is a homerun. And I haven’t even read half of it so far, I had to stop because of some mysterious stomach cramps. The logic is flawless!

ExpatLogger
ExpatLogger

Funny that, it gave me the stomach cramps too!

Drama
Drama

A thrill (chill?) ran down my spine and a joy (dread?) spread in my chest as I read this article. I was also cured of my constipation! Some real serious thinking done by the author, this!

welfareftw
welfareftw

fantastic article. really captures the essence of the struggles of the proletariat against the monocled class.

MillionDollarBonus

Another groundbreaking article Accredited Thinker! I wouldn’t be surprised if this one lands you a Pulitzer!

Paper money is abundant and there is enough to go around for everybody, including the poor. When a country suffers an economic setback and people run out of money, the central bank can simply print more, allowing them to buy necessities like bread and milk. This is a truly egalitarian economic system, which is precisely why right wing extremists like the Australian School of Economics hate it so much.

jfb
jfb

Accredited Thinker would probably agree also that the legalization of weed is an important achievement for progressives

MillionDollarBonus

I’m sure he would. Our dream for America is millions of minorities enjoying legal marijuana from the comfort of their homes, relaxing on a living wage, funded by whites working overtime to pay reparation taxes.

Make my vote count
Make my vote count

Correction on you, Unlike money, paper is made from trees and thus a scarce resource. I can walk around most of my city and don’t see many trees all. Now as you touched on, data bits are abundant and the true wave of the future. How do you think my EBT card works. Each month my balance gets reloaded, like magic. Never a need for me to handle paper money. You would think readers of a ground breaking publication like Accredited Times should know this is the way of the future.
Of course my dealer still insists on paper cash but my guess is it’s just because he does not have a card swipe machine there.

MillionDollarBonus

No you’re right. ‘Paper’ has become a term for government created currencies, and of course a cashless society is the future. In fact, I have a theory that the key to economic progress is the abundance of money. Going from gold to paper put money in the hands of more people, and going from paper to digital currency put it in the hands of even more people. The more money we can create, the greater the aggregate demand and the richer we all become.

Make my vote count
Make my vote count

I see you too have the same vision. The problem with the current paper system is each country is able to control their printing. I think is is just so they can recognize people they think are important to their history. USA used to use dead presidents but that sexist, racist practice is now changing. Who wants to carry pictures of male slave owners in their pockets.
We all know what is needed is one world digital currency controlled by one world government bank. Europe was closest to this until those darn Brits slowed progress with their racist brexit.

ExpatLogger
ExpatLogger

“Unlike money, paper is made from trees and thus a scarce resource” – False! Still plenty of trees in my forest!

ExpatLogger
ExpatLogger

I vote to keep paper money, it keeps us loggers in business!

Make my vote count
Make my vote count

Accredited Times, why will you let an admitted tree killer freely post in this group where we are fighting for critical things like gender rights and a women’s right to have tissue removed.
Until Expatlogger repents for the harm he has done to our trees and denounces all the loggers he associates with I vote that he be banned and all of his posts be flagged as hate speech.
“Save our Trees”
If something is not done soon, we will having coal miners posting here as well.

Make my vote count
Make my vote count

I have had one realization, perhaps Expatlogger and/or his employer did purchase the proper carbon offsets.
If he will release his and his employers tax returns showing that the proper carbon taxes were paid than I will rescind my vote and offer a public apology as his crimes against our environment will not have actually occurred. As long as you pay the carbon offsets you are not harming the environment and shorting our life spans.

drb6
drb6

One of the best articles I have read here at AT. I think author deserves a Nobel Prize for Economy, just like pinnacle of intellect Paul Krugman.

I would also like to propose a simple, common sense solution for capitalists increasing price of everything when working classes finally have enough government-supplied money: PRICE CONTROL! I wonder why this simple solution is not used more often, as many societies have shown that it really works.

jfb
jfb

I wouldn’t be surprised if AccreditedThinker IS Paul Krugman.

MillionDollarBonus

He certainly has an uncanny knowledge of the history of money and the principles driving economic growth. You could be right!

MillionDollarBonus

I completely agree but the problem is the capitalists have another dirty trick up their sleaves. When governments impose price controls, the capitalists simply refuse to sell anything, and they empty their shelves so there’s nothing available for the proletariat to buy! In my opinion the only solution is to have state-run enterprises providing all goods and services.

Maurice Miner
Maurice Miner

Oh God (or Allah, or insert deity of your preference) – we now have four years of PRESIDENT Trump.

MDB, can we please have a “safe-space” maintained as a sticky on your site, so that we can go there to vent our frustrations horror, sadness, and other outpourings of grief?

It is just so crowded at HuffPo, and I think it important that one’s earnest and heartfelt contribution to such a safe space should be easily read and acknowledged by other sufferers.

This will do so much for the continuing mental stability of your correspondents, least of all myself. Thank you in anticipation.

MillionDollarBonus

Hey Maurice, I think you’re right – I’ll put that on my list!

ExpatLogger
ExpatLogger

Please award Accredited Thinker the Nobel Prize For Money while there still time! I’m so relieved they stopped that business of having to carry rocks around in your pockets to buy things, it’s a load off my mind!

Pbier

Very nice article indeed, congratulations. We know that all gold based monetary systems eventually fail, which is why we have evolved to where we are today. It is wonderful that since debt=money, and money=wealth, the world has never been wealthier than it is. The news gets better, as central bank work to create ever more debt, wealth is increasing at an exponential rate! In just a few years time, we may be trillions times more wealthy than we are today. Exciting times lay just ahead

MillionDollarBonus

Maybe that could be another article in your Orwellian series Pbier – debt is wealth!

Pbier

Well. Maybe…I had sort of finished with Orwell’s three core beliefs but some professors consider he had many others which are lesser-known. Did you know that ‘Ugliness is beauty’ was an inspiration for many early pioneers of the modern art movement?

MillionDollarBonus

Interesting. Some of my more radical CRT professors at Portland Community College also called themselves relativists, and they believed that “truth is falsehood”. But the theories behind this are a little above my pay grade.

vdv
vdv

AccreditedThinker, did you mean “exponential” rather than “asymptotic” in “asymptotic quantities of paper currency”?

On the way to cashless economy, countries should print bright pink currency, the way India did with its new 2000 rupee note. That will show support for our pink progressive elites, and the pink-hat women (half-a-million of them) marching to Washington DC, for anti-Trump protest.

2000-rupees-note.jpeg
vacamuerta
vacamuerta

Just as it is necessary for the elite to save capitalism from itself with fiat money creation, the same minority wise elite are saving western civilisation from demographic disaster by creating citizens by fiat, easing labor shortages in our economies that have been made to boom by our far sighted monetary helmspersons. Where would Europe be were it not for the armies of hard working engineers and doctors arriving from Africa and Asia to enliven moribund European ‘cultures’?.

Indeed, the UK’s Gordon Brown’s well timed sale of the nations pile of yellow rock, his ‘post endogenous growth theory’ of a healthy ‘no more boom and bust’ finance sector / property price based economy, and his ‘open door’ immigration policy is one whose benefits we shall be reaping for decades into the future. As a progressive it is hard not to smile at the reflection of the great progressive international statesman Tony Blair that open borders & fiat citizens also serve to ‘rub the rights nose in it’.

The west needs more institutions such as the EU that are immune to the populism and bigotry – no populist vote was needed for the appointment of the superb Mr Junker!. The US needs to adopt the same more fair and progressive system for selection of its ruling elite.

The moral, economic and social success of the entire EU is a beacon of progressivism to the world!.

hatemongering progs
hatemongering progs

smell my finger

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