[Tietäjä]

Originally Posted by Zeyi

So from an economists point of view what are your thoughts on the alternative systems suggested?.. and do you know of any better ideas or concepts as I can't see how anyone would defend the current system as the best choice (other than maybe to say it's too late to change to anything else).

Here's the thing: I don't see anything wrong in the current monetary system. It's not problematic to me. I don't understand the ultimate evil in it. In fact, I think it's a really good a system.

The system's vulnerabilities lie in the users, not the system. Why are people on a habit of living above their means? Because they think they're worth more than they are. More supervision might do good (and as a hindsight, this was probably the key problem with the 'shadow banking system' - lack of supervision). But that's communism.

A simple analogue can be derived from offshore outsourcing: functions are shored because the poor negro making Apple phones in the China factory does it for a fraction of the American worker, hasn't got laws to settle with the work environment, and will happily breathe lead gas. Production costs for especially labor-intensive products would soar if they'd have to be produced on white man's wage levels. This would put upwards pressure on price levels, and reduce spending power through it. I'd probably need to think this more to explain this in a more understandable fashion. This yields downwards rigid wages: which yields unemployment on short run. Companies adapt, local workers don't. The understanding that a lot of our past excesses have been built on slavery and theft through force of arms (explained extensively in Stephen D. King's book) that are no longer possible in the extent they were is key. If our excesses have come from there (and spread around the economy through Baumol's disease -like mechanisms), and the source of excesses dries out, and we've borrowed against our future income assuming we're really that good, or that the source of excesses will never dry out then...?

The short term unemployment causes systemic failure on debt payments (moreso than it's done so far)? Tosses half the system into poverty? Cutting the external value of the currency, or inflating it, all these are really artificial taxes that hit the poor and dumb. The rich and smart have means to avoid these. However, it's not going to shit on anyone who either a) has a realistic belief of his own worth, own capability on the labor market, and b) doesn't have moronic debts on future earnings.

You'd probably at some point argue why and how exactly are companies able to pull out significant profits while I'm here saying the workers in west are worth far less than they think they are? It's mentioned: the rat race between trade unions and companies. Companies are able to offshore things to China where there's no legis on it, where the workers are willingly treated like shit: as long as these opportunities are there, there will be abuse. But then again, why would a white american care what happens to a yellow chinese person.

Digital coin? Right. A very, very complicated system where you'd wind up with what accounts to millions and millions of different currencies (credit coin) the value of which is dependent on a bunch of factors (including something no less volatile and vulnerable to speculation than spot demand) and that have a limited life span? While these really complicated networks can be fascinating do you expect the general public to be able to behave any more rational than they do under the current - relatively simple in compared to the suggestion - system?

edit

Basically, we should concentrate on the credibility of the contents rather than credibility of the author or the means by which it is presented to us (otherwise we stray off topic which I have a feeling I may have done)

But how can we even discuss them when what essentially is neglected is the fact that loans are not only about current wealth or current ability but also about future? It's an essential component. Debt yes is a promise, and it's made against not thin air, but expectations of future income.

edit2. in the video II, i'm wondering if they consider non-americans to be competing for the 'limited jobs' too, and how does this affect their one-closed-country -model?