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

To: benwood who wrote (99577)	11/10/2008 8:42:32 AM
From: Robin Plunder	2 Recommendations Read Replies (1) \| Respond to of 110194

"The gold standard will always fail, for even in Ben Franklin's time, it was known that taxation via fiat keeps one in one's elected office. Taxation via taxation does not. So the gold standard will fail simply because of the fiat option. When fiat option fails horribly, gold standard can be revived. But given enough time, the logic of the gold standard will be forgotten and the compelling lure of inflation via fiat will return. The success of fiat is when the inflation rate is low enough that people still believe they are getting something for nothing from campaign promises. Hence, the Federal Reserve become 'inflation fighters' as a promise to fight 'too much' inflation, which is defined as that which causes the masses to realize that they are being screwed. Now, however, the masses are being screwed in so many directions -- job exports, corporate bailouts, perpetual wars, entitlements with no visible means of support -- that the Fed might as well light an inflation bonfire since people's opinion of gov't can't really get much lower. And there's always fox news, cnbc, cramer, bill gross etc. to convince the masses that it's all for their own good." nice points....one method of avoiding this is to have a properly written constitution to delimit govt power in regards to currency...one would also need a population that was educated on the issues and in agreement with the constitution. We came close to that in the US...but now we have democracy, as opposed to a republic, and in a democracy we have folks voting on giving themselves money, so we go to fiat currency and will not end until the looting of the nation is played out.. we generally speak of democracy as a political ideal, but it is not, it is just mob rule..constitutional republic is the ideal form of govt, provided it actually protects individual rights...life, liberty and property....I remember the comment from the movie the Patriot "why would i fight and risk my life in order to remove one tyrant who lives 3000 miles away in order to replace him with thousands of tyrants who live next door?" Robin