Federal Reserve Succumbs To Election Politics

[TakeAStepBack]

It isn't worthless as long as confidence remains. But it does not and never will be an indicator of wealth. Quite the opposite. Because wealth is created by expelling energy. Money is the store of its value, and currency is merely the means of that exchange.

Take away the expel of energy to create a store of value and all you have is confidence in a few to maintain the system of confidence. That is where we are now and in all of history, it is a an epic failure.

 

[LadyGunSlinger]

Dude, any plumbing analogy goes way, way over my head.

LOL He's simply saying the debt is not a result of modern economics.. FIAT CURRENCY is worthless, PERIOD.

lol

Gee, thanks.

lol

 

[LadyGunSlinger]

It isn't worthless as long as confidence remains. But it does not and never will be an indicator of wealth. Quite the opposite. Because wealth is created by expelling energy. Money is the store of its value, and currency is merely the means of that exchange.

Take away the expel of energy to create a store of value and all you have is confidence in a few to maintain the system of confidence. That is where we are now and in all of history, it is a an epic failure.

You remind me of one of my Professors.. Traditionally astute , soundly wise, and rhetorically- SPOT ON! ;-)

 

[g5000]

Here's a little something to make the gold bugs cry. This is a chart of the expansion several central banks' monetary base since 2007, compared to the expansion of the world's supply of gold during the same period.

To be fair to the SNB, their expansion is a defensive move. Even so, their currency's strength is still hurting the Swiss domestically. No good deed shall go unpunished.

Everyone else, though, is socializing the costs of the global derivatives bubble onto the backs of their taxpayers.

Bogus!

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