I give thanks every day for people who will take my dollars for their foreign assets. While you think that the US is a 500 ton gorilla, I think the US is a 500 ton house of cards.
And, yes, the velocity of the money supply has collapsed. And Basel III is forcing banks to buy sovereign debt that will ultimately collapse.
But as Milton Friedmen told us, inflation is always and everywhere a monetary phenomenon. It’s just a matter of time.
Ultimately what makes an economy go is just plain work.
What the money is, whether it’s hunks or green paper or cockle shells, is secondary to that.
Relative changes in the value of money do stink to those who count their fortunes in mediums of currency.
The biblical admonition as far as worldly wealth could be closely paraphrased as easy come, easy go. Don’t put your treasure here. Do use your worldly assets, the mammon of unrighteousness, as you can to “make friends” who will “greet you in heavenly dwellings.”
Heh heh!
Hunks OF green paper. I’d like to know what the dollar to hunk exchange rate is....