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reverebison
12th October 2008, 08:53 AM
Our gov't just gave a 700 billion dollar bailout to banks and Wall street. Actually it is a 2 trillion dollar bailout, but who is counting.

The most brilliant move they could make for this biological reason:

what are we? We are nothing more than evolved primates. What is money? It is paper. worthless paper. We are evolved primates with paper.

The paper represents nothing more than trust. It is purely psychogical. Its value is all in our primate minds.

Our economy works on trust. Trust in our money. If anything happens to comprimise this trust, money has no value, and our economy falls.

In the great depression, the gov't made huge mistakes allowing banks to fail and causing people to lose thier deposits. In short, they allowed trust to be destroyed. Chaos then took over.

What the fed is now doing is understanding evolution and primates and psychology and trust. All without really knowing it.

By turning on the printing presses and injecting money, they are keeping the trust. This recession will be just that, and not turn into a depression because they are keeping the trust.

The trust we evolved primates have in this paper we call money

OneShotKi11
12th October 2008, 09:02 AM
I still dont trust them so it hasnt done anything for me.
Yet if trust is all that matters whats the need for the bailout?

cyborg
12th October 2008, 09:10 AM
By turning on the printing presses and injecting money, they are keeping the trust.

I hear that's working really well in Zimbabwe.

cyborg
12th October 2008, 09:22 AM
Your analysis is just slightly flawed.

The point of money is not to represent "trust" - it is a representation of economic output. The "trust" in money is necessary simply because in order for any system to work properly it needs the rules to be followed. Money is a placeholder for goods and services. To "trust" in money is to "trust" that you can replace it - at (near) will - with those goods and services. When you can't do that then the money is simply paper - and you can't eat paper.

The financial system essentially creates new forms of money based upon this - 100$ in a savings account is not the same as 100$ in a current account which is not the same as a 100$ bill.

A 700+ billion bail-out from the US government to Wall Street is not the same as 700 billion dollar notes. It is not printing more paper. The objective is to increase liquidity in the credit markets by saying, "you, banks, start lending to each other again using this safe money rather than worrying about how risky the money you have is."

Beerina
12th October 2008, 10:43 AM
"We no longer trust this fake money any more."

"Oh, well then! Here's $700 billion more!"


:boggled:


I think your theory needs some work. I'll wait. :rolleyes:

plumjam
12th October 2008, 11:33 AM
There's something wrong with this mere paper as trust, evolutionary theory.
Yes folks, where is the missing ink?

GreyICE
14th October 2008, 10:14 AM
No.