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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: jim black who wrote (47308)	3/10/2009 7:06:56 PM
From: TobagoJack	Respond to of 218043

hello jim, trust all is well with you. i just got message from hk, that Comment below from an analyst Subject: Excellent Note- A Must Read: "Bass thinks we are in a debt-driven deflationary environment. I couldn't agree more. His points on disintermediary credit/risk, inflation(not something you have to worry about anytime soon), base metals, distressed assets, and the dollar should not be ignored. The letter also has some fantastic quotes that provide some useful historical perspective on what we are facing. I particularly liked this one.. "We may become a great commercial and flourishing nation. But, if in the pursuit of the means we should unfortunately stumble again on unfunded paper money or any similar species of fraud, we shall assuredly give a fatal stab to our national credit in its infancy."-George Washington The historical fear of a central bank and of monetary debasement eroding the savings of the responsible is something we have not heard much about in the press. The right to freely print money and the creation of a national bank with centralized powers were things the founding fathers often associated with the oppression of England and the corruption of the 'old world'. That's why it took the U.S. over a 100 years to end up with a decentralized central banking system. So, I am not surprised to hear someone like Mr. Bass sounding off about the implications of the Federal Reserve buying up government debt. He's in pretty good company. Men like Washington, Jefferson, Adams, Hamilton, and Jackson struggled to deal with the issue of a National Bank. In fact, when the first National Bank of the US was set up, it was expressly barred from buying government debt, issuing notes, or incurring debt beyond its own capitalization. The idea being that these strict rules would limit its power and bolster its image. Back then there was this crazy notion that a National Bank that buys its own governments debt or recklessly issues notes may be perceived to be engaging in improper activities that serve only certain special interests or 'classes'."