Self liquidating credit fekete
For example, he said he would slap a 20pc tariff on Mexican goods to make “Mexico pay for the wall”. So it’s poor white Americans — the very people who voted for Donald — who will pay for the wall. This is the golf-club superhero, the darling of the 1pc. That’s the “straight-up guy made good” that Nascar America from Wisconsin to Pennsylvania thinks it sees. He’s the narcissistic, thin-skinned, keyboard warrior furiously tweeting away from the Oval Office at 4am, hitting out at his mainstream media enemies, stoking rage in the heartland, uncensored, unchecked, unhinged. This is the leader the rest of the world thinks it sees. He’s the construction guy who’s going to rebuild America’s infrastructure and give formerly Democratic blue collar, Bud-swilling, MMA-watching working dudes decent jobs on the sites again.
But what he doesn’t understand is that when you impose tariffs, it is the poor white Americans who buy dishwashers made in Mexico at Walmart that actually pay the tariff. But economic logic apart, what is even more fascinating is the various Donalds on display so far. He’s the guy, the people who deserted Hillary — the Trump Democrats — think they see.
I can see how government bonds might replace gold but it requires a depositor. Do they mean what modern-day Austrian economists mean i.e. I doubt it because at the time the UK was on a gold standard which tends to be anti-inflationary [notwithstanding comments I have made about how there was some inflation at the time]. And where, if anywhere, is the link with gold which, as I understand it, was one of the main issues in the 1896 presidential election?
And surely, once a depositor has deposited his bond the bank can issue its own receipts/notes rather than having anything to do with the government. Or maybe depositors would prefer to use government notes as they are accepted in more places. Whatever the case may be it seems clear that the US monetary system was far from being a free market before the Fed came along.
The exception is a couple of countries that have been coerced into holding the debt of the world, upon which the burden of default and currency depreciation will eventually fall: Germany and Japan.
And as usual there is always an other side to the story.Faced with the supreme necessity of sustaining the national credit and providing a market for Government securities, the Secretary of the Treasury in 1863 passed a National Bank Act basing the issue of currency by the banks upon the purchase of an equal amount of Government bonds.That was a cardinal error which still remains uncorrected. I can understand how notes work in a goldsmith system.Of course, he has his prerogatives: he has to validate a crumbling monetary system and the legitimacy of the Fed, first to schoolchildrden and then to soon to be college grads encumbered in massive amounts of student loans.While it is decidedly arguable that the gold standard may or may not have led to the first Great Depression, there is no debate at all that it was sheer modern monetary insanity and bubble blowing (by the very same professor!