This sums up the problem since we are all Keynasians now since the Smithsionian accord of dirty float.
In an increasingly integrated world economy, the currency rates impact any given country's economy through the trade balance. In this aspect, almost all currencies are managed since central banks or Governments intervene to influence the value of their currencies.
"Here is a example from the FT intellectual parrots"
"Credit systems are not "designed". They happen, congeal, converge, evolve, explore, test boundaries, etc etc, alongside and deeply entwined with various institutions and technologies. That is one of the many things the Austrians have never understood."
It is impossible to lift the Keynasian veil with these people as quoted above. John explaination is telling of the endless parroting we will endure until as Higg correctly points to the clearing mechanisms from inept actors protected from the true velosity of money as we all understand here and the actual mechanism's or lets say traction to natural interest rate to sound money. In the context of todays proxy war we ARE in and HAVE been in the interest rate does not include a actual risk premium in our mixed market which we monitor as reality. In addition both agreements, i.e 1971 made mistakes, similar to the Bretton Woods Accord and in 1973 collapsed. The collapse of the Smithsonian agreement and the European Joint Float in 1973 signified the official switch to the free-floating system. This occurred by default as there were no new agreements to take their place. Governments were now free to peg their currencies, semi-peg or allow them to freely float. In 1978, the free-floating system was officially mandated. In a final effort to gain independence from the dollar, Europe created the European Monetary System in July of 1978. Like all of the previous agreements, it failed in 1993. In todays context they do not run or ever have run a Business, we have. There are 3 rules to capital and 99 percent cannot even name it. Governement tolerates Capitalist's and the Consumer is King in the long run period. We can point back to many Centurys of so called Keynasian regimes and we have here in the forums of GD realities to economic facts that money is decided on by market conditions and not idiots in the long run with paper fools spending other people which they will run out off. There is no economic difference between socialism and communism, ask Putin. In Europe they just voted Ruere in servitium. They are dead and do not even know it yet in the eye of historical fact and in GD purvey. I feel the purview who banksrupts "property rights and contract fullfilled" the most effectively will win the future and maintain stability even with fiats demise in zones since it is designed to fail and accomodate Statist inflationary facts of design. The people decide what is money not elected puppets in the long run and we all know the algos will kill it quicker in addition.
Last edited by aedens
on Mon Jul 09, 2012 11:48 am, edited 9 times in total.