Comments on: No Credit Check Loans Uk: Immediate Monetary Aid

By: rails

rails — Sat, 06 Mar 2010 18:34:10 +0000

Government would only work if men were angels! Who in their right mind would give a monopoly on the initiation of violence to a single group of individuals? That’s lunacy!

By: Dina

Dina — Sat, 06 Mar 2010 17:56:42 +0000

Think about it. If there is more money in the economy, money is more readily available. Consumers and firms are more willing to borrow money since they do not have to pay as high an interest rate on it as they did before, and thus economic activity increases.

By: George Z

George Z — Sat, 06 Mar 2010 11:05:56 +0000

It depends on how big the monetary base is.

According to monetarist theory the inflation rate is equal to the Quantity of Money X Velocity

Velocity of money measures the rate at which the money circulates in the economy. Low demand or spending would imply a low velocity in the currency.

Therefore, in theory, a low velocity of money coupled with a relatively large quantity of money would equal about the same inflation rate as a high velocity with a smaller quantity of money.
For example, the Fed can expand the money supply by printing more dollars to make open market purchases, lowering the bank to bank lending, but if high money demand should persist, it would result in low velocity and the inflation rate wouldn't change much. This is why it's possible to increase the money supply to a large extent and still not see inflation.

I don't think monetary economists care as much about a constant velocity of money, as they do in the rate of change of the velocity of money in a given time period. A positive change signals healthy demand while a negative change signals deflation.

Anyhow, you sparked my interest in this Issue again and I'm going to do some more reading on it. By the way, here's a pretty good source below.

By: truth

truth — Sat, 06 Mar 2010 00:09:08 +0000

freaking Lunatics, I think someone needs to read Adam Smith again when he clearly states PURE CAPITALISM WOULD ONLY WORK IF MEN WERE ANGELS. Chomsky has stuff on this. I’m sure a gold standard would help inflation but absence of government would only increase the corruption that takes between big business that happens all the time without government intervention. The bureaucracy of the government and corporations/”Free enterprise” aren’t a different as these people think.

By: hem_n_me

hem_n_me — Fri, 05 Mar 2010 22:50:23 +0000

Try to get as much growth with the least amount of inflation. Which is what they are doing now with a target inflation rate around 2%

By: CiaoBella71

CiaoBella71 — Fri, 05 Mar 2010 22:24:59 +0000

Sure, but it is not tax deductible.

By: psychic

psychic — Fri, 05 Mar 2010 13:11:48 +0000

Yeah it is called hierarchy and it is present in capitalism as well as government. Government is a shitty thing but like Adam Smith said himself so is capitalism unless “men were angels”. Free market capitalism is a fucking joke(look at the majority of the 3rd World). Business already owns the government anyways wtf does it matter. It would just mean less paperwork for the Ceo’s and easier exploitation of people and resources if there were no government in place.

By: corpo

corpo — Fri, 05 Mar 2010 08:29:20 +0000

man he’s perfectly clear!!

By: jpro

jpro — Fri, 05 Mar 2010 07:10:53 +0000

What I meant to say by that is that if you listen to the passage I was beginning to transcribe at that point in the video (for some reason, I could not post more than 1 comment in making that transcription), Salin sees the problem as the bankers’ pursuit self-interest not being moderated by the risk of their OWN capital; this is moral hazard. It is quite possible for people to harmoniously pursue their self-interest (’greed,’) if they can’t force others to absorb losses from their carelessness

By: urbantool

urbantool — Fri, 05 Mar 2010 05:19:25 +0000

If men were angels? Isn’t the entire point that they persue profit and self-interest?

I don’t trust anyone who tries to help me, but at least you know what to watch out for when a businessman tries to deal with you.