Dutch Central Bank Sale Announcement Imminent? Message Board

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Politics : Dutch Central Bank Sale Announcement Imminent?

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To: Raymond Duray who wrote (20779)	4/26/2004 12:22:23 PM
From: sea_urchin	Read Replies (1) of 80934

Raymond > From the top in 1929 to the bottom in 1932, the broad stock market lost 89% of its value. That was a seminal event in economic history. The crash came about because people failed to recognize that share prices are measured in money terms and not in units of gold. In fact, it was the gold standard that caused the crash because the debt sustained by buying shares on credit on the way up, had to be repayed in real terms on the way down. Today, a crash like in 1929 is not possible for the simple reason that yesterday's money is not the same as today's and definitely not the same as tomorrow's. In fact, debt is no longer considered a problem because eventually it becomes "demonetized" as result of the massive creation of more money and more money. This is one of the problems that serious gold investors (goldbugs) fail to recognize. They want the value of the currency to be fixed against an external measure eg gold. But, today, that's impossible. If the value of the money = debt were to be fixed, every government would be bankrupt. In fact, the whole basis of modern economies is to create as much debt as possible ie "print" as much money as possible.

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