Hello CB, welcome to this thread.
<<My man Bernanke … Jay is not going to be happy about this, I predict>>
On the contrary, I am ecstatic, beyond myself, almost blissfully wetting pants. My alignment is not and cannot possibly be that different from those in New York, London, Tokyo, Singapore, Frankfurt, Shanghai, and every other financial economy center, because I live on Money Rock Hong Kong, next to Freedom Mountain.
So, first of all, you predicted wrong, and very extremely wrong, as wrong as when you showered praise on the light-weight team that took hold of the administration of Washington back in 2000, when I told you so (BTW, I told you so). You thought back then that I was not happy about the administration, and that was also wrong, because I like the predictable, because the gaming goes better.
I am all for fiat money inflation, have benefited greatly, counting my blessings, and will benefit even more, hopefully, and able to count more blessings. I sincerely hope, with all my concentration, that Burp&Boom BurnAndKaput will keeping the printing press busy for the next … let me see … um … 48 months without mishap.
Fiat money increases certain costs, necessitates motion of moolah to avoid those certain costs, and when moolah moves, giving away its position, we can do the necessary and make it our own; while making amends by dispensing altruistic advice.
Speaking of Burp&Boom BurnAndKaput, I looked back on his speech that talked about gold, and how it is unlike a dollar, and how absorbent, soft, and fluffy he will make the dollar.
Calling Burp&Boom BurnAndKaput an inflation hawk is a sign that typifies the times, and the believers will deserve whatever known-knowns coming this way, and hard.
On the flip side, those who understand the game rules, and its inevitable outcome, will deserve the genuine moolah coming this way, extracted from the majority, to benefit the very few, leaving behind spin and debt.
The game will be better than good, if properly gamed, “so good-la”, as folks say in Malaysia, and as good as eating corn the night before followed by drinking prune juice in the morning.
Speaking of corn and prune juice, here is a quote:
“. . . Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services . . .”
federalreserve.gov
So, anyway, I am 100% with you on Burp&Boom BurnAndKaput, and hope he dishes out the goodies, and hard too.
While we are waiting for the inevitable, for those who wish to have a fun read, and to gain some hindsight on what will happen going forward, I recommend this free down-load knowledgerush.com book:
An excerpt on Page 29 states ...
"Even worse than this was the breaking down of the morals of the country at large, resulting from the sudden building up of ostentatious wealth in a few large cities, and from the gambling, speculative spirit spreading from these to the small towns and rural districts. From this was developed an even more disgraceful result,--the decay of a true sense of national good faith. The patriotism which the fear of the absolute monarchy, the machinations of the court party, the menaces of the army and the threats of all monarchical Europe had been unable to shake was gradually disintegrated by this same speculative, stock-jobbing habit fostered by the superabundant currency. At the outset, in the discussions preliminary to the first issue of paper money, Mirabeau and others who had favored it had insisted that patriotism as well as an enlightened self-interest, would lead the people to keep up the value of paper money. The very opposite of this was now revealed, for there appeared, as another outgrowth of this disease, what has always been seen under similar circumstances. It is a result of previous, and a cause of future evils. This outgrowth was a vast debtor class in the nation, directly interested in the depreciation of the currency in which they were to pay their debts. The nucleus of this class was formed by those who had purchased the church lands from the government. Only small payments down had been required and the remainder was to be paid in deferred installments: an indebtedness of a multitude of people had thus been created to the amount of hundreds of millions. This body of debtors soon saw, of course, that their interest was to depreciate the currency in which their debts were to be paid; and these were speedily joined by a far more influential class;--by that class whose speculative tendencies had been stimulated by the abundance of paper money, and who had gone largely into debt, looking for a rise in nominal values. Soon demagogues of the viler sort in the political clubs began to pander to it; a little later important persons in this debtor class were to be found intriguing in the Assembly--first in its seats and later in more conspicuous places of public trust. Before long, the debtor class became a powerful body extending through all ranks of society. From the stock-gambler who sat in the Assembly to the small land speculator in the rural districts; from the sleek inventor of _canards_ on the Paris Exchange to the lying stock-jobber in the market town, all pressed vigorously for new issues of paper; all were apparently able to demonstrate to the people that in new issues of paper lay the only chance for national prosperity."
Buy gold, it is difficult to leverage, hard to print, and requires no one to keep true to their words.
Chugs, J |
