The New Fiat Money Wars

Discussion in 'Economics' started by libertad, Oct 12, 2008.

  1. http://online.wsj.com/article/SB122381862224826507.html

    It seems as though all countries are agreeing to expand their money supplies, thereby creating an agreed upon overall rising and falling of the money supply tide.

    If implemented correctly, then one country does not create an advantage or change at the cost of another....

    This should raise quite a bit of skepticism about future inflationary impacts and their distribution.

    Thus the agreement is about a coordinated one stop overall inflationary event, whereby overall inflation will be experienced evenly by all at a later date....which all in all is better than the cost of immediate de-leveraging of the world's monetary system....

    Thus the idea is to become one giant example of Japan's recent history ?

    A lost decade for all...all for one....one for all ?


    Hmmmm.....
     
  2. zdreg

    zdreg

    it will be both deleveraging and inflation at the same time.
     
  3. Protecting prices......

    And de-leveraging....

    ....................................

    Whereas normalcy would have been prices falling, and those who were smart were left....and those who were not smart were wiped out....

    So in order to be fair to the smart ones who would have been a multiple of some value better off because some failed, is to secure this value multiple as well....

    Which is not going to happen....meaning that the smart ones do not win after all.....

    Something just does not smell right.....
     
  4. clacy

    clacy

    No one will ever fail again. From here out, EVERYONE wins ALL the time :D
     
  5. Sounds like education in USA... let's all now reflect on our feelings...
     
  6. ipatent

    ipatent

    Obviously they need to keep manipulating the price of gold down as well to pull this off.
     
  7. You got it right. G7 agreed to coordinated cuts, loose credit and Nationalizations across the board.

    It really is the Lost Decade gone Global.

    Problem is, commodities have and will continue to be a safe haven for debasement.

    I'm with Jim Rogers on this one. Medium Term pull-back in commodities will shortly be rectified by another bull market.

    Maybe not as high - as fundamental demand will drop off from a Global recession - but will last much longer.

    I'm not even sure about commodity stocks.

    I think the next Bubble will be in Precious Metal - Gold, Silver, Platinum. Smart money will take delivery once the Trillions in derivatives come due and Governments nationalize or print to make payment. Also, the credit tsunamis unleashed by Greenspan since the mid 90's need a new home - first NASDAQ, then home builders, mortgages, financials, commodities, DOW. Its all crashed. All that money is still out there - owned by short-sellers - looking for the next big thing.

    If Governments nullify and outlaw CDS, then inflation isn't so much an issue.

    All this crap is largely derivative created. The housing bubble burst is equivalent to 2-4 Trillion in losses. While thats large, absorbed Globally, is not Depression inducing.

    100 Trillion in derivatives on that CDO mortgage and corporate debt gone south......Yea.
     
  8. Good points...

    Certainly the commodity actuals that you can eat and smell.....should respond....

    Albeit the word "stock" will be a internationally common "cuss word" for a while.......even dogs probably understand the word "derivative" now....

    At least until it is broadly in the media that everybody is making money , again......
     
    #10     Oct 12, 2008