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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (30866)	5/27/2005 1:57:26 AM
From: Square_Dealings	Read Replies (2) \| Respond to of 116555

Fantastic. I had the same idea. And I am very sure they (Chinese) have as well. We should not under estimate others. m

To: mishedlo who wrote (30866)	5/28/2005 5:31:17 AM
From: Haim R. Branisteanu	Respond to of 116555

Does not make any sense to peg a fiat currency to gold - for any government with big social obligations - they need to print fiat money to keep their social programs going. Fiat currency is like an home equity loan in a rising RE market - you keep printing from thin air something that other people accept it as money as long as you credibility is in place. Fiat currency is the secret of the present worldwide perceived economic wealth (last 40 to 50 years) at a time that the majority of the world real assets are the same, whether they are producing or non producing assets-. To exemplify what I mean – if I own a rubber plantation and rubber rise in price, the price of the rubber plantation rises so I feel richer (feel is the right word) - this does not mean I have more of a rubber plantation – it indicates that the value of the fiat money is less in absolute terms - as my plantation generates the same amount of rubber