Wednesday, August 5, 2009

The Kwanstain Is About To Punch Out The Bottom Of The Smoking Crater

Think it's bad now? This is the prologue to the main act.

A million economic talking heads on a million different screens talking a million lines of gibberish will never change the fact one iota : fiat currency doesn't work. It has never worked. It will never work in the future. Mankind does not learn from history. It doesn't matter who claims otherwise, sooner or later, all economies based on fiat currency end up collapsing in spectacular fashion. It took a false recovery in WW2 to pull the U.S. out of the depression and even then they still had a currency tied to a metal standard.

Paper money will always reach it's true value given time : Zero. Zip. Zilch. Nada.


CadorBolin said...

The only way to save fiat currency is if the kwa adopts Volcker-style tough love on interest rates.

But the kwa is not what it used to be 30 years ago and would die in a flaming pit of death and multicult bongo parties if it tried to do so.

Peter Schiff has rightly called the stimulus a "two year sugar high". In fact, I think he might have been too optimistic with the recent stock markets proving that the last few months has been a sucker's rally.

Solsys said...

Well perhaps money never had any value at all, any money, at any time. Not even gold or silver.

Perhaps the only thing that does matter is the ability to make people work together.

In a complex society money is a shared belief that enables the different members to work together.

Texas Arcane said...

A complex society is best served by the relative simplicity of a currency backed by precious metals, which gives everyone the confidence to exchange value which they know will remain a constant. The assumption that modern people have outgrown solid money because of their edjumifacashuns is a terrible conceit. Modern people can just barely read and write and although few will admit it, most of them know nothing at all about economics or the history of fiat currency.

Anonymous said...

Tex have you seen this video?

Notice how the idiot says ""I think Peter's just totally off base..."


Anonymous said...

tex, i've posted here before - calling you batshit crazy and swearing i'd never be back. but crazy or not, you're about the most interesting guy on the web, god knows how you find this stuff, so i reckon i'll grab a crow fork and have me some crow.

oh, and that thing you just wrote? that paragraph on fiat currencies? they ought to be teaching that paragraph in schools, all day every day until the kiddies can say it forwards and backwards. elected officials ought to be forced to have it branded onto their asses before they can take office. unfortunately, especially given the new revelations of the fed getting busted monetizing the debt while trying to look like they weren't (see: zerohedge), i'm afraid it's going to end up being our epitaph.

maybe you're right about other stuff, maybe you're wrong, but you're **precisely** right about this. mea culpa. you the man.

yummmmm. crowwwwwww.