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

To: elmatador who wrote (102167)	8/4/2013 7:18:30 AM
From: Maurice Winn	Read Replies (2) \| Respond to of 219714

The limits on printing are the competitive monetary forces. <What the limits of printing? If printing is limitless, then rich countries can print for as long as they can> Competing against US$ are yen, pounds, euro, shekel, rupee, yuan, bitcoin, Zimbabwe mega$trillion notes [now defunct] and all sorts of other things. The limit is the tolerance of those using the royalty-bearing money. To maximize profits of control, the Federal Reserve has to print enough to get big heaps of profit, but not so much that they drive away those holding US$ to competing mechanisms of payment and storage of value. Politicians, who are normally much more short term in their thinking, prefer to do big heaps of printing in a hurry to get loads of loot while they still have their snouts in the trough and hands in the till. Hence the "separation" of central banks from political process [to some extent anyway]. Privately run banks prefer to keep the rate of dilution high enough to make heaps of profit but not too high. The royalty rate which can be charged is about 5% on a long-term basis [or maybe 3%]. It's important not to kill the goose that lays the golden eggs. But it normally happens because of the tragedy of the commons approach to life taken by most people. If they don't eat the goose, the next person in charge will. Mqurice