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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: RJA_ who wrote (19290)	3/30/2009 5:56:44 AM
From: axial	Read Replies (1) \| Respond to of 71454

"This is a currency crisis masquerading as a banking crisis. If dollars were gold based (as pre 1933) any doubt whether all these bail outs would happen?" --- Not true: Eight hundred years of financial folly voxeu.org You can have depressions, excessive credit and any number of economic ills using the gold standard. If this is a currency crisis, the run on the dollar hasn't started yet. You are conflating Austrian school of economics with fiat money and interventionist economics. By the former, nothing was done right since the world abandoned the gold standard. The world was doomed from that time, so the present crisis is just an inevitable outcome. That may be true. Fiat money and interventionist economics says that given certain preconditions, they should be able to reflate past this crisis. --- This may be crunch time for fiat money and interventionist economics. Who knows? IMO fiat money and the fractional reserve system is predestined to fail. But aren't we after the truth, not opinion? They'll be writing about this crisis for 100 years - just like 1929. Fiat money or gold standard, debt beyond the ability to repay is trouble. If foreign infllows dry up completely, if there's no confidence in the US's ability to repay you may get your currency crisis, with a run on the dollar. Hope not. Jim