Posted on 09/01/2015 8:58:35 AM PDT by citizen
I read decades ago that the average life expectancy of a fiat economy is about 40 years. I searched and quickly found this article titled "Gold and Fiat Currency: 40 Years Later," a four-year old article dealing with the ill-advised decision to have the world's reserve currency dump the gold standard.
The US economy and those of the world in general is at or is fast approaching that life span of about 40 years. These economies are moving at different speeds and thus are of differing maturities but one thing is common. Too many of them rely on some form of central banking system to manage their currency and supposedly cure their financial ills. As we can see, it ain't working.
Perhaps the limits of these fiat currency systems were reached - or even broached - in 2008 and the result has been every central bank with sufficient political authority flooding the world with non-existent cash. These excesses were predictably largely responsible for the current world-wide currency bubbles that these smart pols and bankers are trying - and failing - to deal with sucessfully.
What say you?
(Excerpt) Read more at seekingalpha.com ...
Good find. I own gold stocks . . but they are stocks. I wish I had physical instead.
If you read Dave Stockman’s book (The Great Deformation - all 780 pages) it lays out the carnage.
The real challenge though is timing. Timing is everything. The party has gone on far longer than I ever imagined it could.
As most know, the only thing holding up the dollar is CONFIDENCE in the US economy. Well, we know what has been deliberately done to that. Meanwhile, pumping up the a faux stock market value with reams of printed dollars.
Just think about what someone who hates this country and its very successful capitalistic system could do by simply turning off the money presses......pretty ugly, eh??
Keynesians only know one thing. Borrow and spend.....I guess that’s two things.
I hear you.
America hasn’t had capitalism since TBTF reared its ugly head. No insider company is allowed to go bankrupt - they just live on like zombies, with printed money guaranteeing their increasingly worthless assets.
The balloon is about to pop. Thank God.
I have read some Stockman. Hope it’s not as bad as he thinks it will get.
Here's your current gold, bpb.
And since “we” own the “world’, it isn’t debt, it’s owner equity.
The Dow is 'only' at -384 at the moment.
Well-connected people take control of real, physical assets by using fiat currency wished into existence.
Meanwhile the purchasing power of people who work and pay taxes is being eroded every day. Savers are punished and the middle-class is being hollowed out.
The issuing of Fiat currency is an act of theft. The covering of public debt with printed money is an act of theft. It is a crime in progress. Please do not try to mitigate it with breezy statements like ‘the world owes itself’. Theft is immoral.
We’re near the end now. Buy precious metals and real assets. Your economic independence depends on it.
Work - creative, organized, productive human activity - is the only wealth that has ever been or ever will be.
Gold, silver, oil, currency are worth nothing at all without the work to go with it.
The United States of America is the single largest repository of people who know how to and will work that has ever been known to mankind. No other civilization has ever come close, nor will they ever.
Never, ever bet against the USA’s ability to put out work. This period of market uncertainty will pass. We’ve been through world wars, civil wars, and Jimmy Carter.
Exactly right. 40 years ago, the dollar became totally in flux. No definite measure. Sorta like if a one foot measure (12”) changed daily. Today a foot = 11”, tomorrow it’s 11 3/4”. It would mess up carpentry, building, etc. Same concept. Credit to John Tamny for this analogy.
Tomorrow, September 2nd is Atlas Shrugged Day. In the novel, several major events occurred on 9/2. For those of us who think AS is nearly nonfiction, tomorrow would be the appropriate day for the STHTF.
Because the dollar is still backed by the full faith and credit of the United States Marine Corps. If that ever changes, look out below.
Start a lemonade stand as a kid or have a bake sale for your group and you can count on a visit/letter from someone in Officialdom.
0bamacare, EPA, ACLU, EEOC, this union or that minority group - in one way or another they all stifle jobs, businesses, opportunity and/or productivity.
And then there's politicians and bankers and K Streeters laying down more rules and regulations both foreign and domestic to make competing by regular people in the Global Marketplace difficult-to-impossible.
Here's to hoping we can overcome these gale force headwinds to prosperity!
But it is always worth less than in years past, like your foot shrinks from 12" to 11".
“Never, ever bet against the USA’s ability to put out work. This period of market uncertainty will pass. We’ve been through world wars, civil wars, and Jimmy Carter.”
You are correct as far as your statement reflects the past, but this is a whole new game. The USA does have a great ability to “put out work”, but perhaps not the will. With a huge percentage of the population dependent on the government in some form or other, there is a great tendency to sit back and live off the efforts of the minority who actually produce.
This is not 1865, nor 1955, nor ‘85, nor even 1990. The collective attitude has changed dramatically, and is continuing to hurtle rapidly in the wrong direction. Yes, we have been through the things you state, but we have yet to “be through” the effects of Emperor Buckwheat and his hidden handlers.
Sure things have been bad lately. But I suggest things have been worse in the past. If I were to give in to the theory that there’s no hope, I wouldn’t bother getting up in the morning.
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