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

To: Ilaine who wrote (76871)	7/26/2011 4:18:08 AM
From: Maurice Winn	1 Recommendation Read Replies (3) \| Respond to of 218644

CB, the companies don't need loans, they need shareholders. If a company finds itself running low on money, sell some shares in the company. There's no need to borrow money. Many borrowers of money learn to their distress that borrowing money is not necessarily a good idea, even if lenders will lend it. Speculators in housing borrowed money galore, only to find their dreamed of capital gains failed to materialize. Oops, they even got a capital loss, which was enlarged by the loans as those have to be repaid out of the equity. Mqurice

To: Ilaine who wrote (76871)	7/26/2011 8:50:28 AM
From: Tommaso	1 Recommendation Read Replies (2) \| Respond to of 218644

Actually I already posted a link to someone else: Message 27515224 Even after Roosevelt took the United States off a national gold standard and condiscated gold, the currency remained valued at $35 per ounce of gold (up from around $20). Until 1971, foreign governments, at least, could exchange dollars for gold at $35 an ounce. Since 1971 we have been on a pure paper (fiat) standard. Most recently, the government has been financed by the Federal Reserve buying treasury bonds and notes using newly created electronic deposits to pay for the goverment paper. All this goes far beyond the use of short-term commercial paper issued by reliable businesses to finance commerce. That paper is also often backed by tangible assets, such as a car dealer's inventory. In the early 1700s, in France, there was an attempt to stimulate trade by issuing large amounts of paper money. The result was terrible inflation and a collapse of the whole system. The United States is doing approximately the same thing right now for some of the same reasons: huge government debt and expensive wars.