On Tue, 09 Dec 2008 23:07:29 -0800, patpowersspam wrote: >> On Dec 10, 6:11 am, "Adam Russell" >> wrote: > >>>> "Michael Coburn" wrote in message >>>> >>>> news:ghmq7p62vc3@news7.newsguy.com... >>>> >> >>>>> > On Tue, 09 Dec 2008 02:07:01 -0800, patmpowers wrote: >> >>>> >> >>>>>> >> Fromhttp://www.atimes.com/atimes/others/Henry.html >> >>>> >> >>>>>> >> He mentions "high returns on pension funds of workers paid for with >>>>>> >> permanent loss of employment and regressively low wages for those >>>>>> >> still working." And further notes that such "loss of employment >>>>>> >> and regressively low wages for those still working" results in >>>>>> >> defaults on mortgages held by said pension funds, hence the workers >>>>>> >> lose twice. >> >>>> >> >>>>>> >> Mr. Liu further states that propping up the banks will only lead to >>>>>> >> inflation and continued market failure. The solution he proposes is >>>>>> >> that the inflationary printed money go to increasing wages, which >>>>>> >> will shore up the economy and stop the spiral of defaults >> >>>> >>>> Isnt that the mistake Germany made in the 30s? Run up wages, which >>>> pushes prices up, which requires more wage inflation, ......... > >> >> Yes, but the idea is that this is preferable to inflating the currency >> by trying to prolong the life of moribund institutions. Mr. Liu >> believes that inflation will result in either case, but if the workers >> are getting fired then they will stop spending and the whole thing will >> collapse. Money is what the people with all the weapons say it is. It has always been thus. No matter whether gold or silver or tobacco leaves. It has always been fiat money. It is what the dudes with the sharp pointed sticks will take as opposed to taking your chickens. That is what money _is_. You can have a medium of local exchange all you want but the tax man will tell you what _MONEY_ is.