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

To: mishedlo who wrote (35536)	8/18/2005 11:02:15 AM
From: sciAticA errAticA	Read Replies (2) \| Respond to of 116555

re: the most important effect of China's move toward a currency basket is that it spells the beginning of the end of the so-called 'dollar hegemony' ========== ... any way you cut it, that spells US inflation - perhaps the hyper flavor - not deflation...

To: mishedlo who wrote (35536)	8/18/2005 11:14:25 AM
From: PAST	Read Replies (1) \| Respond to of 116555

Did you see this? Like father, like son? quote.bloomberg.com Court Tells New Jersey Borrowed Money Isn't Income: Joe Mysak Aug. 17 (Bloomberg) -- Even in New Jersey, where creative financing can lead to indictments, you can't count borrowed money as income. That's what New Jersey Superior Court Judge Linda Feinberg ruled last week, in a challenge to the state's plan to sell bonds backed by the state's share of the 1998 settlement with the tobacco industry and use $150 million of the proceeds for its budget. ... [More at link above.]

To: mishedlo who wrote (35536)	8/18/2005 12:34:49 PM
From: gpowell	Respond to of 116555

fiat money isn't a 'reserve' - it's merely a promise All assets carry an implied promise. Notice that we can think of a machine or a building as constituting contingent promises of future delivery. Exchanging current resources for a contingent promise always involves some risk that the promises will fail to be kept - and therefore any analysis of a monetary base of fiat reserves must start with this risk. Assuming that the risk of default on the implied promise of fiat money is 100% because it is "merely a promise" is not a good start.