Wednesday, March 23, 2011
A Little Fiat Bubble History
Wow - imagine that....the government blows a bubble and encourages the lumpen masses to keep pouring their depreciating paper currency into it!
Can you say *stock market bubble*?
Can you say *housing market bubble*?
Just what exactly do y'all think those tax incentives (401k) and bailouts were enacted for?
France, way back then, thought it was doomed when paper money was levered at 5 times the gold at hand.
Hah! At least gold had value.
Today the large banks, BAC, WFC, JPM, and C not only don't have ANY HARD ASSETS backing up their balance sheet....they only have about 1 PAPER DOLLAR at hand for each 15-25 they claim to hold!!!
Never before in history has it been so clear - that *wealth* is a tenuous political condition.