I read your article and I want to say that there are a few issues when it comes to the distribution of goods. Most people overlook a very vital aspect of prices. Not only does it denote the "value" of a good, but it is a signal of its demand and supply. Prices go up and down, not just because of corporate whim, but in response to supply and demand. An economy that is based on the lack of prices will find that demand is unlimited, and will lead to shortages and mass scarcity. Additionally, a "as needed" basis of distribution fails to look at the incentive of the supplier to actually supply goods. If a "supplier" exists, why should I invest in the enterprise of supplying things if I can be an "as needed" consumer.
What is honestly wrong with the monetary system is that we ascribe value to sheets of paper that are monopolized by a single printer (namely the Federal Reserve). When people stated that gold standard had problem, it wasn't due to the nature of gold itself, but to the printing of the dollar representation of gold.
Bretton woods broke down not because it was flawed, but because it was too strict. The influx of printed dollars to fund activities that gold alone could not pay for lead to a bubble that collasped. The bubble is created by the artificial tampering of the marketplace by raising and lowering interest rates and the supply of dollars without acknowledgement of the scarcity of the goods (gold or silver) that were to back the dollar.
Honestly, the price of gold in recent times is a reflection of this. Although it is no longer currency for the us and most of the world, its reaction to inflation is still the same (in general rises with inflation, falls with deflation -- a store of value through time when adjusted).
I'm not a blind advocate of the gold standard, but what is needed is stable currency. Gold standard was not stable due to the greed of those who needed to wage wars, create social welfare programs, and finally corporate welfare programs.
Under a gold standard, it would be impossible to spend beyond your means except by deception, but bubbles would still erupt. Now under fiat currency, we can fund everything we want, but at expense to the political stability of a country, and the mis-allocations of the market place.
Using Money is better than relying on ad hoc supply and distribution controls (emphasis on control). It leads to the use of force to create prosperity which means tyranny. Monetary systems work when you remove coercive facets from the economy (gov't structures that dictate rather than create transparent marketplaces, etc.)
Matthew Blackmonof NC4:16PM August 19, 2011
Manufacturing, manufacturing and manufacturing. Ancillary, ancillary and ancillary manufacturing. Jobs, jobs and jobs.
Makoochof IL1:17PM August 07, 2011
Several decades ago, Margaret Thatcher claimed: "There is no alternative". She was referring to capitalism. Today, this negative attitude still persists.
I would like to offer an alternative to capitalism for the American people to consider. Please click on the following link. It will take you to an essay titled: "Home of the Brave?" which was published by the Athenaeum Library of Philosophy:
MY FAMILY HAD A RESTAURANT WITH A LOT OF PARKING SPACE IN FRONT OF IT. THE MINUTE THE STATES GOT THE STIMULUS MONEY, THEY CAME AND DUG A BIG HOLE IN THE PAKING LOT WITH NONE LEFT, THE RESTAURANT WENT OUT OF BUSINESS. THAT SENT 8 EMPLOYEES OUT OF WORK. THAT’S WHAT THE STIMULUS DID TO US. I HOPE THE NEXT TIME THEY GET A STIMULUS PACKAGE THEY FILL THE HOLE.
SARAof IL11:06AM June 30, 2011
money, finance, it all means nothing and the fed knows this. the fed is simply pushing us to a global financial reset. when this is done, anything you had, and i mean anything you had, will be worthless. the only thing that counts is what you can carry, and what you can defend.
otto burgessof VA2:29PM June 24, 2011
With the quell of a pen there are associated connections and uncertain futures for both QE2's. The first, once the finest ocean liner on the seven seas, the best of the best. The latter; once the bold and noted "Answer to what ales our economy. The ship offered a voyage, an experience available to those willing to choose their right of passage on board within a caste system. The financial savior, a belief that this would be the last time we would beckon, borrow and bandage for all classes and people across the board. Yes, once again the game of "Shuffle Board" is being played and with withering stakes on the High Seas. The magnificent ship sits in dock at DUBAI. Promised a refitting and return to glory; befitting a "QUEEN". We in AMERICA sit in limbo amidst a BEAR market and the only BULL in sight is #%@. This, from most of our Veteran Politicians and wanna bees. And AAA does not have a map to return us to Emerald city. Be glad that you have shoes, Dorothy. And, as for you lil' people of the land. Get back to work (if you have a job). Or they will get you my pretty, and your lil' dog, too. If we remain meek and alone like a ship in dry dock, or like a man alone in his "Field of Dreams". Our demise will drift closer to the shore. I prefer to stand on the bow of our "TITANIC ECONOMIC VOYAGE". The negative, condescending, sophomoric, party-line diatribes must end. And END NOW. Resolve, don't just react. Respond, don't just reply. Listen, think and with dialogue relate, inform and apply the measures by which the yardstick will reach depths in fathoms. To a better day in AMERICA, under AZURE sky's and sailing along on seas like ball bearings on GLASS. God Bless America. And, GOD save the QEII.
JLWof PA11:18PM June 20, 2011
Haven't you heard of "Tylenol For The Financially Challenged"? Take two (or three). It isn't us who has suffered from irresponsible govt spending & policies that diminish America's world position; it is our children and grandchildren that will pay the price. That is, the price of a a trillion dollar interest payment every year to float a 20 trillion dollar national debt. Once the debt payment is a trillion dollars, do you think people will finally acknowledge the debt is there? It does sound like a chunk of a 3 1/2 trillion dollar budget. Our stock market has been "allowed" to virtually recover by tricks such as the QE's and corporations buying back their own stock with interest free money. Are you better off than you were a year ago? If you're not on social security, the answer is "yes". When will someone ask "Is our country better off than it was a year ago?".
KDof TX1:07PM May 25, 2011
Bernanke and Greenspan have killed me. My savings are as worthless as toilet paper. In fact, toilet paper may have higher value as at least it has utility value for wiping. Wiping my hiney with those scratchy little ones and five would be very uncomfortable and practically useless. If Bernanke picture was on the bills I would at least get the satisfaction of soiling his face.
Working and saving are dead issues. The sociatial glue that they provided are now gone. We now have only Wall Street to hold us together; since they own Washington lock stock and barrel. However, my blood pressure has not recovered from their last acts of creativity CDS, Derativitves and the like.
Does anyone know of a bunker away from civiliation that I could inhabit until the shooting stops?
I just don't care anymore.
Donof WA2:38AM May 01, 2011
If you have 5 minutes, this is well worth the watch.
http://market-ticker.org/akcs-www?post=183985
When you finished viewing this entirely, what was your deduction about your 401k, 403b, retirement plan or the economy of the nation and when do you think the crap will hit the fan.
Ervinof CA5:00PM April 13, 2011
Joe T is right. When something is actually produced, it generates wealth for many. In addition, a significant amount of US money goes to non-productive foreign adventures. We have been in N. Korea, Germany, Japan sixty years. NATO is primarily the US. Why? We need to pull out and focus on our real defense only.
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Matthew Blackmon of NC 4:16PM August 19, 2011
Makooch of IL 1:17PM August 07, 2011
John Steinsvold of NY 10:28PM June 30, 2011
SARA of IL 11:06AM June 30, 2011
otto burgess of VA 2:29PM June 24, 2011
JLW of PA 11:18PM June 20, 2011
KD of TX 1:07PM May 25, 2011
Don of WA 2:38AM May 01, 2011
Ervin of CA 5:00PM April 13, 2011
Jo of MD 11:43AM April 10, 2011