Confidence is leaving the Fiat Money System

Discussion in 'Economics' started by cgtrader, Oct 10, 2008.

  1. Great article. I fully agree with the Austrian economics school of thought.
  2. As Ludwig von Mises noted,

    "The wavelike movement affecting the economic system, the recurrence of periods of boom which are followed by periods of depression, is the unavoidable outcome of the attempts, repeated again and again, to lower the gross market rate of interest by means of credit expansion. There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.[2]"

    No doubt in my mind we are headed towards the total catastrophe quite soon.
  3. In America's origins, we were an experiment in freedom and democracy...

    Too bad we couldn't also be an experiment in FINANCIAL RESPONSIBILITY!!
  4. I don't think it's over yet. Remember, they can postpone the collapse by further inflation. We are well on are way to a new burst of inflation. Look at the commercial paper market, it's already down near fed funds rate. The only thing left is for the central banks to bypass the commercial banks and inject credit directly into the sytem.
  5. I second that
  6. Daal


    people are loving the fiat money US dollar today. its gold that they are leaving
  7. It is not "love for the USD," but rather repatriation to the US and some shoring up and buying time for the US economy, to stabilize it and get something start working... some UK and US names threw their weight in as well.

    The USD is air-money - not even monopoly-money... hehe - a bit extreme, but...
    In the end - the final "bill" is still there - and it keeps growing.
  8. Mecro


    Not exactly. This country was not founded as a democracy. It was founded as a republic. There are key differences, the most important being that the majority cannot choose to violate the basic rights of a minority.
    Democracies don't work, they always end up in fascism/socialism.

    Wrong again. Read the constitution and the writings of the founding fathers regarding the monetary system. Study Andrew Jackson's battle with the international bankers.

    A lot of the current events were warned about & foretold. Quick sidenote, I think it was Ben Franklin, but he said in one of his writings that the real cause for the Revolutionary War was the colonies refusing to accept England's monetary system. They wanted to keep scrip.
  9. Mecro


    There are no major nations, and very few minor nations, where it's any different.
    #10     Oct 10, 2008