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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (67670)	9/14/1999 2:07:00 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 132070

Tippet, I remember Bubblehead making remarks along those lines. He was talking about the Fed's ability to ensure that all bank obligations are met because of the central banks current ability to provide whatever amount of money is necessary. Something it couldn't do when we had "real money". Of course take that to its strategic implications and add in the IMF, World Bank, and igonorant taxpayers... Wayne

To: yard_man who wrote (67670)	9/14/1999 3:01:00 PM
From: Mike M2	Read Replies (2) \| Respond to of 132070

Tippet, ho ho ho " RAZOR SHARP " thoughts. A tough love tidbit from Bob Prechter " At the Crest of the Tidal Wave" p. 291 " the mechanism for runaway inflation is already in place, in the form of the Monetary Control Act of 1981 , which gives the U.S. government the power to monetize any institution's debt. The implications of this power are staggering . In fact, the very existence of the act itself virtually insures that it will be implemented. It is crucial to understand , though, that the government cannot prevent bankruptcy. All it can do is transfer the cost of bankruptcies from the investors in those businesses to all people who are holding assets denominated in dollars. " ho ho ho It is worth noting that the greater part of credit creation has come from the credit market ( non bank) but I suppose the gov't can find a way to have the banks purchase depressed debt securities from the market at a premium to " save the markets" . perhaps by executive order like FDR did to confiscate our gold. For those who think the US has never defaulted on its debt the abandonment of the gold standard was a contractual default. To quote Ludwig von Mises " there is no means of avoiding the final collapse of a boom expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. Thus far AG & co. seem bent on choosing the latter strategy. Mike