It puzzles me too, but Jim so far has been right in his
broader picture. I'm not so sure his predictions of gold
certificates, etc. will come true, as he has been riding
the gold bull just like everyone else.
The Fed is a very creepy organization -
it is not easy to determine what exactly they are doing, and
whatever they are doing influences the market in a major way.
That makes me a conspiracy theorist too.
Some folks try. I think Bart here on SI has a good grasp
on what's going on at the Fed, based on limited data the
Fed provides.
I don't like what has been happening in the USA - a
persistent decline in manufacturing in favor of services,
a lot of those financial services. It smells like a major
Ponzi economy, a long time to fix. Since the Fed's major
role is to protect financial institutions, it seems the
fix will have to occur via a financial and currency crisis.
I'm really scared of hyperinflation. The reason is above -
the Fed is owned by large financial institutions, and
therefore is protecting them. The transfer of wealth from
the real economy to speculators and the Ponzi economy
becomes complete in hyperinflation - the speculators
of sorts prosper, while the real economy collapses.
Eventually the country is completely ruined. This goes
on until the currency is anchored to something. Maybe
that creepy organization, the Fed, will have to be abolished,
and the grand fiat experiment of the last 37 years will have
to end.
Every fiat experiment in history ended badly. Will
the current global fiat experiment be an exception from this rule? |
