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

To: Giordano Bruno who wrote (38150)	5/9/2011 9:00:00 AM
From: Real Man	1 Recommendation Respond to of 71463

Yep. Theories put in practice do not end well -ng- Precious metals is the only safe haven in this type of a scheme, government-induced credit and asset bubble. -ng- Perhaps, this is the only valid comparison to what has been going on today, but at much slower pace. Magicians.... "Confident that Law was a magician who would make them all rich, citizens clamored to get their hands on each successive bank note issue. In Paris' Rue Quincampoix and the Rue de Venise, where stock trading was carried on, wild scenes were everyday occurrences. The streets were crowded with people seeking to buy shares. Brokers madly signaled from nearby windows as shares and bank notes worth millions changed hands. The market became so seductive that even the working classes sought a part in the prosperity. Since money was easy to borrow and you only needed to put down a ten percent deposit to enter the market, people from all walks of life flocked to the Rue Qincampoix to seek their fortune." thecurrencycollector.com Aftermath "By June 1720 the note issue of the Banque Royale had reached a staggering 2,696,000,000 livres. This sum was approximately twice the money in circulation before Law's bank opened its doors. The increase in the money in circulation created an inflationary spiral which could not be reversed once the population became leery of Law's Mississippi Scheme. The entire complex development of the bank's other schemes for colonial companies, monopolies and tax collection came into question. Law's plan for his bank and the issue of paper money was sound in and of itself; however, the issue was carried to tremendous sums that Law had never anticipated. At the end in 1721 the notes had ceased to circulate and specie gradually took their place. The country painfully returned to a specie footing as in years past. This severe lesson in paper money inflation had permanent and long lasting effects upon France. The popular distrust of paper money and big banks kept France financially backward for many years thereafter. France was not to see circulating paper money again until the French Revolution of 1789-1795 necessitated it."