Quote:
Originally Posted by bale002
I agree with those who suggest that the fiat money/gold debate is a moot point.
What we have here is not a collapse of the dollar or some such, but a collapse of sound economic policy. The volatility of the dollar, or whatever currency, and its impaired role in resource allocation is a reflection of that collapse, not the cause.
Tinkering with the cause may help, even if temporarily (or it may not), but what we really need is a return to sound economic policy, and I don't see that on the horizon, though I hope something useful develops.
In this context, it will be interesting to see what comes out of the series of G-20 meetings starting on November 15 and what effect, if any, it will have on the policies of the incoming US administration.
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Hi bale002,
The way I see it is we have an inherently unstable money supply. When assets are purchased with debt also serving as collateral trends develop to create inflationary momentum since purchasing assets that rise with debt is profitable. Unfortunately the reverse trend is these same assets must be sold to service the debt in decline. This creates an expanding and contracting money supply and often violently. Money is supposed to be a tool to measure value. When this tool functions as poorly as it has it destroys commerce because no one knows what the value of anything is.
We need to eliminate commercial credit/debt currency. Its corrupt and only serves a wealthy criminal class.
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