I was explaining that there is a market in US$ and it works quite well, but is very inefficient which is why I'm inventing the new world currency Qi. At present there are delays in transfers, high exchange rate charges, paperwork, dilution by central banks, taxes and fees galore.
Selling apples isn't very efficient either, but there has been a market in tomatoes for centuries.
But yes, if you want to also discuss financial systems: <Everything is fine?
No Problems with our financial systems?? >
Again, it has never been close to what I'd call perfect, but it has been working well enough, for the most part.
What is wrong in the minds of many is that they have lost their money. They borrowed too much and paid too much and earn too little and have done their dough. Or they loaned too much with inadequate collateral and have done their dough.
But that doesn't mean the financial system isn't okay. It works just fine. I can buy the bankrupt assets for less than they cost 3 years ago. Heck they aren't even bankrupt. Look at J P Morgan and Wells Fargo for example - way up near their pre crash high instead of near zero or at zero.
Where is the problem? If you mean millions of people with mortgages being bankrupt, along with their creditors, that's just the market in action. I can buy a bunch of houses or bust banks tomorrow. The financial system works fine [albeit with the aforementioned inefficiency].
Heck, it's working better than ever. I can short J P Morgan and Wells Fargo now with a few quick clicks, or a cheap international phone call.
The banks are loaded with money they want to lend. Money flows around the world like water.
Where's the problem? If you mean Citibank shareholders lost their dough and so have people with mortgages, then that's just what happens to people who mess up lending and borrowing. That's not a bung financial system. That's a good one. Unfortunately, the government is robbing taxpayers and citizens and diluting the currency to reward the bung creditors and debtors for their poor management, but that doesn't mean the financial system isn't working. It just means it's business as usual in democracies with crony capitalism [government takes from savers and producers and gives to bludgers and spivs].
Mqurice |
