Nonsense. We are witnessing the beginning of the end for the Federal Reserve notes. At what point is too much federal “borrowing” too much? Let me tell you. When productivity cannot keep up with inflation—and inflation does not mean prices going up at your favorite store or wherever you buy anything. INFLATION MEANS AN INCREASE IN THE MONEY SUPPLY, brought about by printing fiat money—more and more “money” chasing fewer and fewer goods.
As more regulations take hold, the producers—farmers, energy companies, producers of everything from cotton to coal, and everyone else, cannot keep up with the stranglehold of the government. They eventually say enough is enough. Taxation becomes so burdensome that no one can stay in business, and nothing is produced. Look at Zimbabwe, where they have gazillion dollar notes, but no one can find anything to buy as nothing is being produced.
A millionaire on an island is impotent—he cannot buy anything, as his money is worthless—there is nothing to be bought.
It is incremental, happening slowly with people not interested until nothing can be bought. It happens whenever a “federal bank” gets hold of the money supply and prints it into oblivion. You think the US is exempt? Think again. Janet Yellen is just the most recent incarnation of the power brokers of the “federal” bank. Janet, give me a call. Who do you think you are fooling? Answer: everyone.
Actually nothing being bought may be partly because people have so much STUFF. Have you heard of the 700 mile yard sale? Also while wages at the top have skyrocketed, middle class pay has been virtually stagnent and the middle class pays the highest percentage of their earnings in taxes.
The 10-yr government bond yield in Japan is now around 0.5%, following an almost linear decline that started in 2006. The only way to rationalize buying 10-yr JGBs at 0.5% is believing that Japan will have a deflationary environment over the next decade and/or the central bank will absorb (or even monetize) the bulk of new issue bonds.
“A millionaire on an island is impotent—he cannot buy anything, as his money is worthless—there is nothing to be bought”
well according to some- Gilligan and the Skipper can help!
Just a little levity
lol