25 Responses to “China’s financial war on derivatives contracts for their banks”
BourneAccident
08. Mar, 2010
Thanks for the good info. .
snakecharmer133
08. Mar, 2010
You must make the difference between price discrimination and a market price, most economic textbooks show examples where you have a high price for the first product and that the price then goes down (huge simplification) as production and volume increase. Price discrimination is when the seller decide on the price of the product outside the market and charges prices according to the consumption level of the consumer/buyer. You can read some about this in a good Macro economics book.
BourneAccident
08. Mar, 2010
Isn’t price discrimination an undenialble reality? Also, high volume transactions can alter pricing in a market economy. Theft would also factor into the equation. It’s all fairly confusing to me at times. Thanks for your comments.
snakecharmer133
08. Mar, 2010
The most important aspect of a market economy price discrimination is prohibited, it is not prohibited in the sense of having some form of punishment for it but it is no market economy if you have/allow price discrimination.
You should be wary of using wikipedia, the editing on wikipedia is open to any fool who decide to type something. Usually you get a better understanding from reading a good encyclopaedia at your local library.
BourneAccident
08. Mar, 2010
I looked up “market economy” on Wiki and I hadn’t realized that it was supply & demand based system. That explains alot. So, what’s left is the distinction between capitalism (as pertaining to a supply & demand economy) and different forms of government. A lot to think about.
snakecharmer133
08. Mar, 2010
All governmental systems have inherent problems with corruption, meritocracy is no different. We have some influences of meritocracy in the world today where you have to have a university degree to even be able to apply for certain jobs. This is naturally used to corrupt the system since you can form the requirements for a job after the person you want to employ. Considering that you need the right background to be able to go a higher level of education shows how corrupted the system is today.
snakecharmer133
08. Mar, 2010
I think you are fully aware of what a market economy is, I do however think that you confuse capitalism as a prerequisite for a market economy, some governmental systems depend on a certain type of economy to work. Socialism need a planned economy, liberalism need a market economy. Most have a pretty good understand of the world if they just take a few minutes and ask themselves some questions without accepting the answers given by mainstream media.
BourneAccident
08. Mar, 2010
I guess I don’t understand exactly what market economy is. ?
As far as meritocracy is concerned, who had that deal going on? And if anyone did, who decided who was what?
snakecharmer133
08. Mar, 2010
It is more complex; USSR was a capitalistic (Cpt) system as was the Tsar empire. Cpt is an extreme of plutocracy where all your capital is meshed up to form influence. If you look into different types of governance such as meritocracy, monarchy, etc you get a feel for capitalism. You will run into people who say that capitalism is the same as a market economy but this is not, Cpt as such is a system of governance where market econ. is a system to achieve economic efficiency. Need mo’ letters =(
BourneAccident
08. Mar, 2010
So, if I have this straight. . . Capitalism is a free market enterprise, existing along side of government without government interference, but eventually leads to plutacracy, or governement by a wealthy group. Correct?
snakecharmer133
08. Mar, 2010
Capitalism is a system of governance where the capital you have decide your influence in society. Capitalism as such can exist alongside any form of economic system, market economy, planned economy, mixed economy, etc. This is not true to 100%, the capitalistic system will govern the economic system in a way that will benefit them. Hence you will not have a market/planned economy under a capitalistic system. In the USSR you had private companies and in the US you have US state companies.
BourneAccident
08. Mar, 2010
When you get a chance, can you explain further?
Capitalism (not the same as free markets)
Capitalism = plutocracy
Thanks. . .
socialmedic
08. Mar, 2010
Industrial Capitalism.
jahlyric
08. Mar, 2010
why is it when it goes to 3:19 the lady says “massive: like a sheep? Is she saying that we are blind sheep??what do you guys think?
Silberdachs
08. Mar, 2010
Lets put banker bonuses into real perspective.
The US economy grew at a $89b annualized rate in Q2. That was the first growth since Q2 2008 and came to $22b in actual growth in Q3. The bankers, after causing the greatest economic calamity since the Great Depression, are rewarded with $140b, thats x6 the growth accomplished so far in the much heralded economic recovery.
Meanwhile, 7m families face foreclosure and 25m Americans cant find full time work.
labartic
08. Mar, 2010
Billion dollar bonuses almost.
snakecharmer133
08. Mar, 2010
capitalism is not the same as a market economy, capitalism is a plutochracy in reality!
DojoNDude
08. Mar, 2010
Good for China. I wish Obama had the balls to tell the bankers to shove their derivatives up their ass! They should all be in jail eating gruel, not the filet mignon their used to. Instead, their toasting their million dollar bonuses with expensive champagne!
MORCOPOLO0817
08. Mar, 2010
Sadly, that is true!
rap9206
08. Mar, 2010
04:44 ohhhh yeah baby!
jpcl21
08. Mar, 2010
Silly Marxists- knowledge is for thinkers.
kkklownknight6699
08. Mar, 2010
“And your utopian society has been tried before and it has failed. ”
very funny haha
“Capitalism is not the problem. . . . greedy bankers are the problem. ”
A Capitalist system without a banking system, How does that work exactly?
Central banking came as a result of rapid credit expansion and instabilities of the free banking system.
pythos82
08. Mar, 2010
And your utopian society has been tried before and it has failed. Where we have gone wrong in recent decades is that we have went back to a central banking system starting back in 1913. Read up on the founding fathers and their view of central banking. Capitalism is not the problem. . . . greedy bankers are the problem. Fix the banking/monetary system with REAL reform (not like what BHO is proposing) and we’ll be fine. In fact, that would fix a lot of the problems we have with spending.
castorini
08. Mar, 2010
America is doomed! HAHA!
tinfoilcap
08. Mar, 2010
Likely a huge spike in price. Germany has also been asking for the gold from Ft. Knox.
BourneAccident
08. Mar, 2010
Thanks for the good info. .
snakecharmer133
08. Mar, 2010
You must make the difference between price discrimination and a market price, most economic textbooks show examples where you have a high price for the first product and that the price then goes down (huge simplification) as production and volume increase. Price discrimination is when the seller decide on the price of the product outside the market and charges prices according to the consumption level of the consumer/buyer. You can read some about this in a good Macro economics book.
BourneAccident
08. Mar, 2010
Isn’t price discrimination an undenialble reality? Also, high volume transactions can alter pricing in a market economy. Theft would also factor into the equation. It’s all fairly confusing to me at times. Thanks for your comments.
snakecharmer133
08. Mar, 2010
The most important aspect of a market economy price discrimination is prohibited, it is not prohibited in the sense of having some form of punishment for it but it is no market economy if you have/allow price discrimination.
You should be wary of using wikipedia, the editing on wikipedia is open to any fool who decide to type something. Usually you get a better understanding from reading a good encyclopaedia at your local library.
BourneAccident
08. Mar, 2010
I looked up “market economy” on Wiki and I hadn’t realized that it was supply & demand based system. That explains alot. So, what’s left is the distinction between capitalism (as pertaining to a supply & demand economy) and different forms of government. A lot to think about.
snakecharmer133
08. Mar, 2010
All governmental systems have inherent problems with corruption, meritocracy is no different. We have some influences of meritocracy in the world today where you have to have a university degree to even be able to apply for certain jobs. This is naturally used to corrupt the system since you can form the requirements for a job after the person you want to employ. Considering that you need the right background to be able to go a higher level of education shows how corrupted the system is today.
snakecharmer133
08. Mar, 2010
I think you are fully aware of what a market economy is, I do however think that you confuse capitalism as a prerequisite for a market economy, some governmental systems depend on a certain type of economy to work. Socialism need a planned economy, liberalism need a market economy. Most have a pretty good understand of the world if they just take a few minutes and ask themselves some questions without accepting the answers given by mainstream media.
BourneAccident
08. Mar, 2010
I guess I don’t understand exactly what market economy is. ?
As far as meritocracy is concerned, who had that deal going on? And if anyone did, who decided who was what?
snakecharmer133
08. Mar, 2010
It is more complex; USSR was a capitalistic (Cpt) system as was the Tsar empire. Cpt is an extreme of plutocracy where all your capital is meshed up to form influence. If you look into different types of governance such as meritocracy, monarchy, etc you get a feel for capitalism. You will run into people who say that capitalism is the same as a market economy but this is not, Cpt as such is a system of governance where market econ. is a system to achieve economic efficiency. Need mo’ letters =(
BourneAccident
08. Mar, 2010
So, if I have this straight. . . Capitalism is a free market enterprise, existing along side of government without government interference, but eventually leads to plutacracy, or governement by a wealthy group. Correct?
snakecharmer133
08. Mar, 2010
Capitalism is a system of governance where the capital you have decide your influence in society. Capitalism as such can exist alongside any form of economic system, market economy, planned economy, mixed economy, etc. This is not true to 100%, the capitalistic system will govern the economic system in a way that will benefit them. Hence you will not have a market/planned economy under a capitalistic system. In the USSR you had private companies and in the US you have US state companies.
BourneAccident
08. Mar, 2010
When you get a chance, can you explain further?
Capitalism (not the same as free markets)
Capitalism = plutocracy
Thanks. . .
socialmedic
08. Mar, 2010
Industrial Capitalism.
jahlyric
08. Mar, 2010
why is it when it goes to 3:19 the lady says “massive: like a sheep? Is she saying that we are blind sheep??what do you guys think?
Silberdachs
08. Mar, 2010
Lets put banker bonuses into real perspective.
The US economy grew at a $89b annualized rate in Q2. That was the first growth since Q2 2008 and came to $22b in actual growth in Q3. The bankers, after causing the greatest economic calamity since the Great Depression, are rewarded with $140b, thats x6 the growth accomplished so far in the much heralded economic recovery.
Meanwhile, 7m families face foreclosure and 25m Americans cant find full time work.
labartic
08. Mar, 2010
Billion dollar bonuses almost.
snakecharmer133
08. Mar, 2010
capitalism is not the same as a market economy, capitalism is a plutochracy in reality!
DojoNDude
08. Mar, 2010
Good for China. I wish Obama had the balls to tell the bankers to shove their derivatives up their ass! They should all be in jail eating gruel, not the filet mignon their used to. Instead, their toasting their million dollar bonuses with expensive champagne!
MORCOPOLO0817
08. Mar, 2010
Sadly, that is true!
rap9206
08. Mar, 2010
04:44 ohhhh yeah baby!
jpcl21
08. Mar, 2010
Silly Marxists- knowledge is for thinkers.
kkklownknight6699
08. Mar, 2010
“And your utopian society has been tried before and it has failed. ”
very funny haha
“Capitalism is not the problem. . . . greedy bankers are the problem. ”
A Capitalist system without a banking system, How does that work exactly?
Central banking came as a result of rapid credit expansion and instabilities of the free banking system.
pythos82
08. Mar, 2010
And your utopian society has been tried before and it has failed. Where we have gone wrong in recent decades is that we have went back to a central banking system starting back in 1913. Read up on the founding fathers and their view of central banking. Capitalism is not the problem. . . . greedy bankers are the problem. Fix the banking/monetary system with REAL reform (not like what BHO is proposing) and we’ll be fine. In fact, that would fix a lot of the problems we have with spending.
castorini
08. Mar, 2010
America is doomed! HAHA!
tinfoilcap
08. Mar, 2010
Likely a huge spike in price. Germany has also been asking for the gold from Ft. Knox.