Paper? FIAT? OK what backs it up? "In gd we trust? Federal Reserve note...I bet you and try it, ask 100 people and see if they know what a federal reserve note is.
It is our currency and add "this note is legal tender for ALL debts, public and private"
WHY? because we say so. GOLD? well we know the Inca Indians, Romans....and before all cherrished it....all that glittered......we know we had that STAMPEDE out West, and strip mined the rain forests of Brazil....the Congo......is that REAL MONEY?
GOLD, SILVER have NO DEBTS against them, they flucuate in value, but they NEVER have any debt against them....paper and electronic money is what passes for money....light a match to it, or get hacked and what ya got?
KNow what happens when you lose control? one can spend more than they actually have, CREDIT and BANK LOANS were to help our econmy grow.... how banks made money.....on the interest.
To be able to lend, banks lured in deposits by offering a fair rate of interest.....NOT ANYMORE?
BIG BANKS go to the "Federal Reserve" to get money to loan at a reduced price...a guarantee profit margin UNLESS one defaults.
You can make "funny money" too easy to get, loan it to anyone and set a cycle of defaults that crash down on the speculative cycle of excess......
We have 2 cycles, EXPANSION and CONTRACTION......it is the latter right now, not condusive to growing economies. IT WONT CANT change overnight.
Attempts to stimulate economy have BACKFIRED! AS it has in Japan for 20 years after their debt bubble popped.
DID bailing out the banks help? Are we creating jobs? Housing revived? OUCH
Now not just banks, or companies need bailing out but entire countries!!! Back to MONEY, what do the others use to finance these bailouts?
It is an illusion that we accpet paper instead of rocks or donuts for trade, when real money is glittering. REAL money is not very liquid, hard to transport, not practical for commerce, but many agree and use it to STORE WEALTH.
I am not TOO optimistic about what is going on, problems not addressed, changes not in the works, same guard...at the door...
Its an INSIDERS GAME.....and if it is PAPER we trade and value the more of anything around the less valuable it is.
And when something can just be printed w/o any restrictions, that is worrisome. The difference between Greece and the US is we print our own money.
Little guy isn't sniffing much! OLD joke.....we are the MOLES in the HOLE....and when the papa mole and momma mole go to the opening and look out, what do the baby moles smell?
MOLEASSES
STocks made NEW ALL TIME HIGHS In 2007......1980-2007 is 27 years.....how long will this SECULAR BEAR RUN? 10-16 years IMHO....gd help us
Duratek
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