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

To: Cactus Jack who wrote (70285)	1/10/2011 11:59:30 AM
From: pogohere	1 Recommendation Respond to of 217764

"Governments don't typically show such restraint over time or when faced with a crisis, real or imagined." The historic record is a mixed bag that often has been misrepresented. I have no particular problem with the exceptional times when a genuine crisis calls for a departure on the agreed limits of fiat creation. The worst cases involve loss of control of the sovereign by the people. The American Revolution was a world historic event that held the potential that the citizenry would control its sovereign. The counterrevolution began the day the Revolution ended, when Alexander Hamilton et al lobbied for the transfer of the money franchise to private parties. That counterrevolution is now almost complete with the establishment of the Federal Reserve and the refusal of the Congress to assert control over it for the people. The citizens have been overcome by the banksters and their backers who will run gold up when they are set to take full advantage of that. The Chinese have a fiat that is not backed by gold (the Chinese government has been encouraging its citizens to accumulate gold and silver) and have produced a great deal of wealth for the Chinese people in a manner and at a speed that no one anticipated. The goal is to feed, cloth and shelter 1.3+ billion people, no small thing (!) However, the disparity in wealth in China is world class, as is the degradation of the environment. I believe the emphasis on auto production will prove to be an unfortunate choice. Still, China is an outstanding example of the utility of a fiat money regime to generate real wealth without a significant store of gold.