Okay.....here's the point I'm trying to make, and of course everyone has to use their own discernment; take all of the different pieces into consideration rather than just looking at a single thing that is going on. Yes, gold is at a certain range and has been for a while. The dollar appears very strong right now. But look at all the…
Okay.....here's the point I'm trying to make, and of course everyone has to use their own discernment; take all of the different pieces into consideration rather than just looking at a single thing that is going on. Yes, gold is at a certain range and has been for a while. The dollar appears very strong right now. But look at all the other events happening in the world ( such other countries beginning to reject the dollar and moving to gold-backed sovereign currencies) and look at the long-range trajectory. Or don't! It's completely up to you. But....the very fact alone that fiat currency is created out of thin air and has no real value other than perceived and that people everywhere are waking up to that fact might be worth considering. Remember, also, that monetary systems throughout history have always had a finite life. We are already at the end of a very long run. Anyone who pays attention to whats been going on in the markets will tell you that the whales began moving into hard assets a while ago and that recently there has been a full-on run toward precious metals, to the point of where now the commercial suppliers have a long lag time between receiving orders and actually filling them. This is very interesting. Catherine Austin-Fitts imo is one of the most rational and credible (and not to mention ethical) financial-minded people on the planet, and she's been saying for a long time that all the value in the current system has been completely sucked out of it......it's an animated corpse with only a superficial appearance of life. Nobody knows for sure where things are going, but if you look at all the different things going on, there is a lot of food for thought.
I believe your premise is incorrect. Modern "fiat" money isn't "created out of thin air". It is borrowed into existence. That means for every dollar or other currency unit out there, there is also a corresponding obligation. This means there is at least the potential for a currency "squeeze". due to de-leveraging. We had the beginnings of one in 2008. Then governments became the borrowers of last resort to kick the can down the road for a while longer. It will be quite interesting to see what happens this time...
It sounds like what you are saying is that it doesn't exist, until by the act of someone borrowing it...it is created? And isn't that pretty much the premise of fractional reserve banking?
Yep. I don't think any western government has engaged in raw printing of true fiat money. And yes, fractional reserve banking can (and usually does) multiply what the government borrows into existence.
However you look at it, it sure seems like creating something out of nothing, regardless of whether it is physical paper or electronic and regardless of who is doing it, though, doesn't it? The only value in it is in the perception that people have of it.
- I don't pretend to know what the future holds, but I do feel very strongly that nothing is as it seems, and that things are not going to be returning to any semblance of what we have considered "normal", probably ever again. Time will tell. Prepare for the worst, hope for the best, and with any luck we will all end up somewhere in the middle.
Okay.....here's the point I'm trying to make, and of course everyone has to use their own discernment; take all of the different pieces into consideration rather than just looking at a single thing that is going on. Yes, gold is at a certain range and has been for a while. The dollar appears very strong right now. But look at all the other events happening in the world ( such other countries beginning to reject the dollar and moving to gold-backed sovereign currencies) and look at the long-range trajectory. Or don't! It's completely up to you. But....the very fact alone that fiat currency is created out of thin air and has no real value other than perceived and that people everywhere are waking up to that fact might be worth considering. Remember, also, that monetary systems throughout history have always had a finite life. We are already at the end of a very long run. Anyone who pays attention to whats been going on in the markets will tell you that the whales began moving into hard assets a while ago and that recently there has been a full-on run toward precious metals, to the point of where now the commercial suppliers have a long lag time between receiving orders and actually filling them. This is very interesting. Catherine Austin-Fitts imo is one of the most rational and credible (and not to mention ethical) financial-minded people on the planet, and she's been saying for a long time that all the value in the current system has been completely sucked out of it......it's an animated corpse with only a superficial appearance of life. Nobody knows for sure where things are going, but if you look at all the different things going on, there is a lot of food for thought.
I believe your premise is incorrect. Modern "fiat" money isn't "created out of thin air". It is borrowed into existence. That means for every dollar or other currency unit out there, there is also a corresponding obligation. This means there is at least the potential for a currency "squeeze". due to de-leveraging. We had the beginnings of one in 2008. Then governments became the borrowers of last resort to kick the can down the road for a while longer. It will be quite interesting to see what happens this time...
It sounds like what you are saying is that it doesn't exist, until by the act of someone borrowing it...it is created? And isn't that pretty much the premise of fractional reserve banking?
Yep. I don't think any western government has engaged in raw printing of true fiat money. And yes, fractional reserve banking can (and usually does) multiply what the government borrows into existence.
However you look at it, it sure seems like creating something out of nothing, regardless of whether it is physical paper or electronic and regardless of who is doing it, though, doesn't it? The only value in it is in the perception that people have of it.
- I don't pretend to know what the future holds, but I do feel very strongly that nothing is as it seems, and that things are not going to be returning to any semblance of what we have considered "normal", probably ever again. Time will tell. Prepare for the worst, hope for the best, and with any luck we will all end up somewhere in the middle.