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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (33635)	6/5/2005 3:23:43 PM
From: mthomas	Read Replies (1) \| Respond to of 110194

Yes I understand the capital requirement thing, and apparently there is but one historically available precedent regarding paper currency, banking, and the use of fractional banking for GDP growth. That event was CHINA during centuries gone by. Eventually, that experiment failed too, BUT it was clearly demonstrated that this type of system grows GDP and makes prosperity MUCH more rapidly than a one to one banking system. The Bretton Woods system required the USA to maintain a 25% gold cover clause. As the Korean War and then the Viet Nam debacle continued to drain the US Treasury, de Gaulle continued to call in his gold from the US Treasury and handing in his paper dollars. This brought the USA very, very close to the 25% cover clause which became the driver behind Nixon closing the gold window. Interesting that it was also Nixon that opened the Chinese Bamboo Curtain to American trade. This time no opium was needed<ng> to open the markets, just trade and hope and recognition by the Cowboys of the Western World that over yonder was this HUGE supply of consumers. Well, I won't take this any further. My respect for the Chinese might make me considered anti-American. I am not. I am an American, and the first duty of a Patriot is to protect his nation from its government. I cannot do it alone, but I will not contribute (whenever possible) to what I view as "not my government", even though it holds the reins of power. An Al Gore I am not. (where is Maurice Winn, he should be writing all this sort of claptrap instead of making me do it ???!!) <<<<<<<>>>>>>>>> I cannot verify this because the net was not around at the time, but I have heard that the Tiananmen Square thing was actually an UNEMPLOYMENT RALLY which was then fanned into and framed as, a Pro-Democracy(?) rally. Any comments on that would be appreciated. (Yes I know that Reagan(?)[no, it was Bush41] or whichever president was in the saddle at that time assured the Chinese that the use of force would be understood by the USA govt as necessary to prevent more widespread trouble....this statement is verifiable but I do not have a link nor time to locate same gwu.edu >.) Why does the URL truncate like that?mt gwu.edu Regards, mthomas