O/49er, really enjoyed the post. "If it works like it's s'posta..."......
That's the big IF
From what I've read of your posts, I suspect we have different views about the power of the powers that be to handle things...
IMO, the powers that be have lots of control over the price of gold, because they own so much
BUT they have much less control over private debt creation, because unlike gold, the private sector can make lots of its own money...
IMO, the tail (debt and money expansion) is wagging the dog (the govt, the FED, the CB's and unfortunately the rest of us). In boom times a seemingly infinite number of bad loans, and unreal money, based on non-existant capital can be made at the whim of the privaet sector.
And of course, "GreenExpand" and the polticians encourage it, for obvious political reasons.
But the point is, we don't know how much bad debt is out there. You can be sure that the same forces that created this bubble now dictate that perception of its size must be minimized.
The Exchange Stabilization Fund(s), IMF and World Bank are limited funds--only so big. After that, as always, the choice is inflation or bankruptcy.
Good Investing |
