“The 2008 Financial Crisis was caused by a central banking system.”

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Connor27
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Discuss.

Personally I support a system of free banking as employed in Scotland until the 19th century.

Interested to see other peoples’ views on this idea.
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DarthRoar
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Yeah it was. But the prosperity of capitalism also relies on a central banking system, so it's worth it.
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DrMikeHuntHertz
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Regulation is what allows capital to collect too much in one place making financial crises possible.
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Connor27
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(Original post by DarthRoar)
Yeah it was. But the prosperity of capitalism also relies on a central banking system, so it's worth it.
Interesting idea. Is it fair to assume that you subscribe to Chicago school economic theory then?
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Connor27
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(Original post by DrMikeHuntHertz)
Regulation is what allows capital to collect too much in one place making financial crises possible.
I firmly agree, and the existence of a central bank is one of the biggest types of financial regulation there is.

Have you read the ideas of the economist Ludwig Von Mises by chance?
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Harry123341
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why can't I borrow from the bank of england to get my mortgage rather than going through high street banks just for them to inflate the interest rate?

asking for a friend
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Connor27
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(Original post by Harry123341)
why can't I borrow from the bank of england to get my mortgage rather than going through high street banks just for them to inflate the interest rate?

asking for a friend
Central banks are regulators and just don’t offer consumer services by convention, this has been the case for many years.
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Harry123341
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cheers mate , secondly is this true

will there always have to be someone in debt in our system ?

as if the bank loans X amount if money and expects the business to pay back X + interest surely there isn't anymore money flowing than X therefore at least one business can't pay it back so someone is gonna have to be in debt?

this has been heavily debated in eccon at uni for a while ??
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Connor27
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(Original post by Harry123341)
cheers mate , secondly is this true

will there always have to be someone in debt in our system ?

as if the bank loans X amount if money and expects the business to pay back X + interest surely there isn't anymore money flowing than X therefore at least one business can't pay it back so someone is gonna have to be in debt?

this has been heavily debated in eccon at uni for a while ??
Correct. It’s impossible for a capitalist country to function without at least one person being in debt.

I’m guessing you have a big interest in economics then? Do you have an interest in the political side of economics and if so, which school of thought do you subscribe to?
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Harry123341
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well , now don't mock me for this , I did business at A level and when we did the eccon side of things , just the way the system was built seemed to me , like it was designer to **** people up a bit and lead the rich to prosper a bit but that's more socio ecconmics deprivation and politics but at uni I only do it as a club I actually study the built enviornment as my degree

and in terms of my school of thought what are my options , I'm aware of treakle down ecconmics which I really don't subscribe to , polticaly I would say I'm left leaning although jezza corbyn looses me when he is weak surrounding immigration and the EU but without sounding like an entitled SJW socialist Thersea May and her attitudes make me feel ill
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DrMikeHuntHertz
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(Original post by Connor27)
I firmly agree, and the existence of a central bank is one of the biggest types of financial regulation there is.

Have you read the ideas of the economist Ludwig Von Mises by chance?
Not really but I have watched a lot of Milton Friedman videos and related content.

I really should get around to reading his stuff.
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username3672344
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(Original post by Connor27)
Discuss.

Personally I support a system of free banking as employed in Scotland until the 19th century.

Interested to see other peoples’ views on this idea.
It was a crash caused by free market capitalism and deregulation.

If you think extreme free market capitalism is desirable then fine, but people should stop pretending that it doesn't also have huge drawbacks. Namely that it very nearly brought the world's economy down, were it not for the bailouts.
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DrMikeHuntHertz
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(Original post by DeBruyne18)
It was a crash caused by free market capitalism and deregulation.
Proof?
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HoldThisL
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I have no difficulty believing central banks cause problems but I struggle to imagine a free market of money being better.

Don't get me wrong, capitalism is great but a little bit of government regulation and intervention here and there is needed, a mon avis.
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Connor27
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(Original post by HoldThisL)
I have no difficulty believing central banks cause problems but I struggle to imagine a free market of money being better.

Don't get me wrong, capitalism is great but a little bit of government regulation and intervention here and there is needed, a mon avis.
A stranglehold and complete monopoly on interest rates by a nationalised entity is more than just a little regulation, don’t you think?
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HoldThisL
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(Original post by Connor27)
A stranglehold and complete monopoly on interest rates by a nationalised entity is more than just a little regulation, don’t you think?
Oh yeah, absolutely, I was speaking generally. I'm just not sure (or at least not confident) that the market supplying money would be a more reliable and resistant system.

In the short term, at least, the lack of certainty in market-provided currency/money would surely end badly.
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DrMikeHuntHertz
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(Original post by HoldThisL)
I have no difficulty believing central banks cause problems but I struggle to imagine a free market of money being better.

Don't get me wrong, capitalism is great but a little bit of government regulation and intervention here and there is needed, a mon avis.
How confident are you that the market can be controlled?

So far it seems to end badly every time its tried.
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Napp
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And who would you rather trust with the powers of the central banks? The markets? I think not :lol:
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Connor27
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(Original post by Napp)
And who would you rather trust with the powers of the central banks? The markets? I think not :lol:
The individual banks, that’s what we did until the late 19th/early 20th century throughout the western world and it worked just fine.
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Napp
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(Original post by Connor27)
The individual banks, that’s what we did until the late 19th/early 20th century throughout the western world and it worked just fine.
Do I seriously need to explain why that is a truly moronic comparison?
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