Confusing Capitalism with Fractional Reserve Banking

[Bit_Happy]

 Today, capitalism is blamed for our current disastrous economic and financial situation and a history of incessant booms and busts. Support for capitalism is eroding worldwide. In a recent global poll, 25 percent (up 2 percent from 2009) of respondents viewed free enterprise as “fatally flawed and needs to be replaced.” The number of Spaniards who hold this view increased from 29 percent in 2009 to 42 percent, the highest amongst those polled. In Indonesia, the percentage went from 17 percent to 32 percent.

Most, if not all, booms and busts originate with excess credit creation from the financial sector. These respondents, incorrectly, assume that this financial system structured on fractural reserve banking is an integral part of capitalism. It isn’t. It is fraud and a violation of property rights, and should be treated as such....
http://mises.org/daily/6834/Confusing-Capitalism-with-Fractional-Reserve-Banking

Do you think "capitalism" is to blame for many of the world's problems?
Do you know what real Capitalism is?

[1714819849]

1714819849

[1714819849]

1714819849

[1714819849]

1714819849

[Timetwister]

I wonder what people would think about capitalism if it wasn't because governments decide what is taught in the schools (at least in Spain).

[Justine]

Capitalism is just one system among many for society to organize itself. The people have chosen the system.

The bailout of cooperate America has nothing to do with capitalism. It is socialism at work.

[JerryCurlzzz]

Capitalism and socialism are both huge red herrings. It is important to note that many, such as the above poster, have no idea what socialism is, considering that they think "corporate bailouts" = "socialism."

[Pente]

I live in the Puna area of Hawaii where a lot of people rail about how bad capitalism is. Yet none of these people that are against capitalism seem to understand any of the funadamentals of capitalism. They all have capitalism mixed up with corporatism, socialism, fascism, ect.

At a minimum, capitalism requires:

1) Strong Property Rights

2) Sound Money

Bitcoin will help with both of these. As an asset, it is a form of property that can be easily hidden. You can now accumulate wealth without the fear of garnishments or government confiscation. As money, it won't keep losing it's value over the years.

Bitcoin will form a new foundation for capitalism.

[polynesia]

People sometimes confuse 'crony capitalism' with capitalism.
Corruption and crony capitalism are to be blamed for a lot of problems in the developing world.

[Timetwister]

Capitalism and socialism are both huge red herrings. It is important to note that many, such as the above poster, have no idea what socialism is, considering that they think "corporate bailouts" = "socialism."

It's socialism in the sense that there's a distribution of resources, from those that are productive and made good decisions to those that made mistakes.

[murraypaul]

Capitalism and socialism are both huge red herrings. It is important to note that many, such as the above poster, have no idea what socialism is, considering that they think "corporate bailouts" = "socialism."

It's socialism in the sense that there's a distribution of resources, from those that are productive and made good decisions to those that made mistakes.

Bail-ins are a distribution of resources from taxpayers to shareholders and bondholders.
Socialism would be for the state to take over the failed companies.

[meadefreling]

I live in the Puna area of Hawaii where a lot of people rail about how bad capitalism is. Yet none of these people that are against capitalism seem to understand any of the funadamentals of capitalism. They all have capitalism mixed up with corporatism, socialism, fascism, ect.

At a minimum, capitalism requires:

1) Strong Property Rights

2) Sound Money

Bitcoin will help with both of these. As an asset, it is a form of property that can be easily hidden. You can now accumulate wealth without the fear of garnishments or government confiscation. As money, it won't keep losing it's value over the years.

Bitcoin will form a new foundation for capitalism.

An highly insightful elaboration into the benefits of capitalism and its correlation to bitcoin. In addition, the major problems hindering the functions of a capitalist economy is greed,self center natures,and the desire for power forever by the rich and mighty in countries where capitalism reigns.

[jersey19957]

Capitalism = have money and create more money out of said money easily. If poor, you are fucked unless genius.

[Timetwister]

Capitalism = have money and create more money out of said money easily. If poor, you are fucked unless genius.

To make more money you need to make good investments and risk what you have previously have gained by selling goods and services. Just take a look at an old Forbes list, and you'll see you don't even know many of those that appear.

[BitcoinBadger]

I wonder what people would think about capitalism if it wasn't because governments decide what is taught in the schools (at least in Spain).

Capitalism or Communism I see both things have their own good and flaws as well.Either way sabotages common people at the end

[wasserman99]

Capitalism = have money and create more money out of said money easily. If poor, you are fucked unless genius.

This is not true. Capitalism will reward people for working hard and coming up with ideas to make money, and implementing those ideas. If you have a lot of money and piss it away, you will not be able to make more money out of nothing.

[Timetwister]

I wonder what people would think about capitalism if it wasn't because governments decide what is taught in the schools (at least in Spain).

Capitalism or Communism I see both things have their own good and flaws as well.Either way sabotages common people at the end

What's wrong with capitalism? Capitalism means voluntary exchange, and therefore exchanges were every part considers that is winning.

[botany]

What's wrong with capitalism? Capitalism means voluntary exchange, and therefore exchanges were every part considers that is winning.

i used to get an hour's paid lunch break and double time for working on sundays, now i don't. if i complain my employer will replace me with a third world immigrant. there is nothing voluntary about work for whatever pay and conditions the employer decides or starve to death.

Well, the third world immigrant was destined for life long poverty if not for capitalism. So you definitely can't say that everybody is worse off.

[Bit_Happy]

I wonder what people would think about capitalism if it wasn't because governments decide what is taught in the schools (at least in Spain).

This is so true:
I had teachers in high school who blamed "free market excess" for issues in the early 20th century, but America definitely didn't have free markets then, it was dominated by powerful industrialists who used the Gov't to dramatically increase their wealth and power.

[Bit_Happy]

Well, the third world immigrant was destined for life long poverty if not for capitalism. So you definitely can't say that everybody is worse off.

only problem with that is most thirld world countries are also capitalist

Can you specifically name at least one or two of those countries?

[wasserman99]

Can you specifically name at least one or two of those countries?

india most of africa most of latin america

inb4 but they arent really following true capitalism,the ron paul types are as bad as trotsky supporter

The reason these countries are generally poor and their citizens have a low standard of living is because of the fact that these countries do not have any national resources or goods they can export to other countries. This means they are unable to receive money that can be used to purchase things from abroad. It doesn't have anything to do with capitalism.

[twiifm]

Can you specifically name at least one or two of those countries?

india most of africa most of latin america

inb4 but they arent really following true capitalism,the ron paul types are as bad as trotsky supporter

India isnt poor its a BRIC.  You might be thinking of Bangladesh or Pakistan

[counter]

Can you specifically name at least one or two of those countries?

india most of africa most of latin america

inb4 but they arent really following true capitalism,the ron paul types are as bad as trotsky supporter

The reason these countries are generally poor and their citizens have a low standard of living is because of the fact that these countries do not have any national resources or goods they can export to other countries. This means they are unable to receive money that can be used to purchase things from abroad. It doesn't have anything to do with capitalism.

Are you saying they don't have natural resources?  Because I think that is just a silly statement and I'd love to see some evidence that would back that statement out.  I think what you mean is they don't have the means to know or extract the resources they have, yes?