You're getting more exciting in your old age:>))

 

REH

 

From: [email protected]
[mailto:[email protected]] On Behalf Of Ed Weick
Sent: Sunday, October 16, 2011 1:43 PM
To: RE-DESIGNING WORK, INCOME DISTRIBUTION, EDUCATION
Subject: Re: [Futurework] This week-end's G20 impasse

 

Nope, I've just posted the next exciting installment!

 

Ed

----- Original Message ----- 

From: Ray Harrell <mailto:[email protected]>  

To: 'Keith Hudson' <mailto:[email protected]>  ; 'RE-DESIGNING WORK,
INCOME DISTRIBUTION,EDUCATION' <mailto:[email protected]>  

Sent: Sunday, October 16, 2011 12:46 PM

Subject: Re: [Futurework] This week-end's G20 impasse

 

Looks like you two agree to disagree.

 

REH

 

From: [email protected]
[mailto:[email protected]] On Behalf Of Keith Hudson
Sent: Sunday, October 16, 2011 7:05 AM
To: RE-DESIGNING WORK, INCOME DISTRIBUTION, , EDUCATION; Ed Weick
Subject: Re: [Futurework] This week-end's G20 impasse

 

Ed,

Comments below:

At 21:35 15/10/2011, you wrote:

(KH) It's no use infusing money into the economy if nothing actually happens
-- which is what Bernanke has been doing for the past two and a half years
to no avail. Being on a gold standard doesn't impede the creation of new
money for economic change. The greatest economic (and social) change ever in
the history of man took place in England during the 18th and 19th centuries
when the gold standard operated. A whole society from top to bottom moved
upwards and for the first time ever an avalanche of talent was released from
the working classes.

 (EW)The great social change that took place in the western world during the
18th and 19th Centuries was due to tremendous technological and social
change and not due to the gold standard.


It certainly was! Without gold as the basic (most valuable) currency (and
copper and silver as subsidiaries), the industrial revolution would never
have got started. Large amounts of it had to be available for investment
before innovations could get off the ground. This was available in London as
a result of international trade with other countries (where gold was already
the universal trading currency) and also a considerable flow of landowners'
rents and profits (copper and silver mostly) that was fed into London via
the countryside banks to exchange for gold (to pay for foreign luxury goods
or skilled artists or industrial development somewhere else in the country,
etc). The other great European seaports such as Amsterdam, Hamburg and
Stockholm didn't have countryside banks behind them so this was the reason
why the industrial revolution took off in England many decades before
elsewhere in Europe. 



(EW) The cities became industrialized and people flocked from the
countryside into the cities.  As you've pointed out many times, a vast array
of new goods, including consumers goods, military hardware and social
infrastructure changed the ways in which people lived, fought and were
looked after.

And yes, Bernanke has been infusing money into the US economy.  However,
there is a very large difference between pouring out money letting it fall
where it may and directing that money toward specific growth inducing
purposes. 
 The current American problem appears in part to be one of an inability to
decide what to do with money that the Fed can make available.  Politicians
are at loggerheads on this, so much so that very little can happen.  There
have also been large shifts in power in the US over recent decades, and the
question of who decides what - the politicians or the bankers - lurks behind
the scenes.  Obama has indicated that he would like to raise taxes on the
incomes of the rich, but it's unlikely that he'll be able to do it.
I don't think a revival of the gold standard would be very helpful now.  Our
current economic problems, if fixable, require decisions on questions such
as whether the best course of action is debt reduction or stimulation via
the injection of money into the economy, and, if the latter, what should be
funded and how.


(KH) Since the 1980/90s I think we're into a completely different ballgame
now. But I don't think we'll be able to see the outlines clearly until the
present currency mess is sorted out.

Keith



Keith Hudson, Saltford, England http://allisstatus.wordpress.com/2011/10/
  

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