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What happens when you pour water on a pine cone.
water,pine,cone Water + Pine Cone = Cool
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1. If the government is elected like in US, it would be motivated to print large amounts of money to coincide with elections, to increase it's electability. This was seen with Carter administration putting pressure on the Fed to lower interest rates (thereby increasing money supply), that were raised to battle stagflation. Fed didn't bulge, Carter got voted out, and Fed managed to conquer the stagflation crisis. US government being forced to borrow from the Fed puts a check on irresponsible spending, likely to prevent hyperinflation episodes like in Russia or Yugoslavia
2. If there's no private lending with interest, how would promising ventures get funded? Surely we couldn't have some government bureaucrat review funding for every start-up
I've watched half of the second video, and they propose to abolish private lending at interest, just letting the government print money to finance its spending. There is a couple of problems with this:
1. If the government is elected like in US, it would be motivated to print large amounts of money to coincide with elections, to increase it's electability. This was seen with Carter administration putting pressure on the Fed to lower interest rates (thereby increasing money supply), that were raised to battle stagflation. Fed didn't bulge, Carter got voted out, and Fed managed to conquer the stagflation crisis. US government being forced to borrow from the Fed puts a check on irresponsible spending, likely to prevent hyperinflation episodes like in Russia or Yugoslavia
2. If there's no private lending with interest, how would promising ventures get funded? Surely we couldn't have some government bureaucrat review funding for every start-up
Ummm... were we watching the same video?
Now I wish I had a pine cone so I could check it just closes when you pour water on it.