Saturday, July 16, 2011

sabado Gigante

el funeral de Ezra Pound.

"Pound understood that money is ticket for exchange. People who make things can trade more easily with other people who make things using money. There should only be as much money as there are things to trade. Another way of saying this is: money supply should increase and decrease along with the change in economic output.

Here's the rub. If money supply grows faster than the amount of things made, then theft is taking place. The thief creates extraneous dollars and spends them first: at the time when the rest of us expect a dollar to be worth a certain amount. By the time the thief's dollars have been absorbed into the economy, we notice our dollars are buying less. This is inflation. The thief has dipped into our savings and traded with shoddy bills.

What happens when money supply shrinks compared to things made? Then a new characteristic of money emerges. Things made don't always last — take bread for instance. A baker must sell his bread in a matter of days, otherwise it's lost. Money isn't bound by such considerations. A thief can horde money until the baker's goods rot, then buy his bakery at a huge discount.

The “thief” in both these examples holds a special place in society: he controls the supply of money and “future money” called credit. Controlling money supply is economic power; it is a sovereign privilege. The people who really control a nation control its money supply. [1]

Pound's criticism of the financial class was that they were bad sovereigns. They managed money supply for their own benefit: they were thieves. In contrast, the Founding Fathers were good rulers because they designed a system where Congress managed the money supply; and Congress was answerable to a large swathe of the population.

Pound identified the grasping, vampire-like nature of international finance, and the venal nature of its supporters in national governments.[2] He was interested in finding ways to systematically limit their power: perfecting what the Founding Fathers started in Article 1 Section 8 of the Constitution. This is why Pound studied in the work of Silvio Gesell. ""
Linkito?? Lo siento, no tengo El Linko porque mucho derecho...

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