Hi Mike, There will not likely be <<someone WILL f*&k up really badly ... fiat OR political world>>. There ARE, now, plenty of entities already, in fiat AND political world.
The exposure and follow-on cleansing will take some time, maybe even decades.
In the nasty mean and long time, the world is already loaded up on debt and going to war, and previously willing equity and debt financing savers will now have to whilly-nilly finance the war as well, even as a 1.5% loss for Fannie and Freddie will wipe out 100% of their tier 1 capital, calling for more savings or more debt.
Now, I am told that there never was a recession, and if the non-recession is so good so far, can you imagine what the actual recession will look like? I am guessing it will look pretty inflationary depressive.
As to gold being 'debased', perhaps, but maybe not, because gold on ladies' ankles are not actually money, but only near-money, and when gold is needed, at all times in the past, there never seemed to be enough of it, because there is never enough true money, only enough false paper.
Increasing money supply in response to a faceful of foam from bubble explosion was never the answer in the past, and will not be the solution now.
I do have to admit that the wait is certainly entertaining, especially on this thread:0)
I must now go for the reflexology shop near Gate 28 at this airport.
Chugs, Jay |
