Comments on: The Playbook of the Bankers

By: Dinlochavo

Dinlochavo — Tue, 29 Dec 2009 13:40:03 +0000

Paper money has been seen by the perceptive few to be a fraud from its very inception. Try reading William Cobbett’s “Paper Against Gold” or to give it it’s full title: “Paper Against Gold; Or, The History And Mystery Of The Bank Of England, Of The Debt, Of The Stocks, Of The Sinking Fund, And All The Other Tricks And Contrivances, Carried On By The Means Of Paper Money”.
I laughed like a drain when I read it, ‘cos it’s bloody true!

By: etch

etch — Mon, 28 Dec 2009 08:25:35 +0000

http://inflation.us/videos.html

By: etch

etch — Mon, 28 Dec 2009 08:24:22 +0000

jc..IT COULD BE PARANOIA to some degree especially if u live in the usa
its all happening but not too widely disclosed ..usa cannot pay its way out of DEBT …u understand DEBT ,cant even pay the interest

therefore such as hence they will combine usa,canada & mexico into the north american union NAU & bring in new currency ,start afresh ,a ” FORCE de MAJOURE”.

the AMERO which is worth 2 cents on the old dollar &
by jingo thats all china & other usa”s creditors GET

By: JC

JC — Fri, 25 Dec 2009 00:46:42 +0000

Sorry etch, is the guy on the YouTube someone to be believed or just convinced of his own paranoia?

By: etch

etch — Thu, 24 Dec 2009 09:42:42 +0000

merry all

http://www.youtube.com/watch?v=hE8qodiE0x4&feature=related

By: JC

JC — Thu, 24 Dec 2009 06:42:54 +0000

Even though I don’t have the time or the inclination to prove it, I think I can say with certainty that wage growth has lagged growth in both the money supply and CPI. To what the degree is the question. I guess if we look at it in terms of the main investment people make over their lifetimes–the home–we can see that it takes many more years of the median salary to purchase the median home (I don’t want to risk a housing bun fight, but that is the reality) now than it did in the 50s-90s.

By: Chris57

Chris57 — Thu, 24 Dec 2009 05:51:57 +0000

In reading my last comment I realised that I implied that the RBA has no role in managing the A$. What I meant was that the RBA seeks to influence the value of the A$, in accordance with its charter, not control it in an absolute sense.

By: Chris57

Chris57 — Thu, 24 Dec 2009 05:22:34 +0000

JC – your point is well made and corrrect. That is why in considering the value of the Australian currency and the RBA’s role in maintaining its stability it is not just as simple as referring to just one component such as average income vis-a-vis A$ value. It was the original article above that made this link to purchasing power. To suggest that the RBA should (could??) manage the value the value of the A$ over time, almost as it were by decree, is ascribing a level of control to it that no-one, least of all the RBA itself, has or would suggest.

By: JC

JC — Thu, 24 Dec 2009 04:43:28 +0000

“. A quick look at this since the 1950s shows that AWOTE has increased by more than 2000% over this time. In other words purchasing power of the average wage earner in terms of the value of the A$ has more than doubled. ”

Wouldn’t it be a good idea to consider inflation in goods and services when considering purchasing power?

By: Chris57

Chris57 — Thu, 24 Dec 2009 04:32:03 +0000

Two quick points. Firstly, in regards to the reference to Ross Gittens and the quote from one of his most recent articles, having read the article in full it is very clear that this was said in irony. While I can see that you and Mr Gittens are at polar opposites in your respective points of view on economics, the role and value of the RBA, and the fiscal and monetary responses to the GFC, in this article he has stated more or les what I would expect you to say – that economists and the RBA and Treasury have been remarkably and repeatedly unsuccessful in forecasting economic outcomes.
The second point goes to your reference to the purchasing power of wages over time since the establishment of the RBA in 1960. The closest proxy for comparison is the trends in average weekly ordinary time earnings (AWOTE). A quick look at this since the 1950s shows that AWOTE has increased by more than 2000% over this time. In other words purchasing power of the average wage earner in terms of the value of the A$ has more than doubled.