Thursday, July 12, 2012
U.S. Cities Winking Out One By One Like Canaries
(in a toxic coalmine.)
It is such a good point to raise on fiat money. The smaller towns are expected to survive on what they really have in their pockets, which is close to nothing after taxes and depreciation and interest. The big cities can just call up Bernanke and have him send over a truck filled with pallets of ZOGBux piled to the roof. They are still accepting this funny money in some quarters and this allows the larger players to continue to tread water for a little while.
Of course, despite all the solipsist rubbish that Bernanke has ever published on the topic of money, nature will win out the way she has been doing for tens of thousands of years. Sooner or later people realize this paper is worthless and flee to precious metals for security.
This story always ends in tragedy. It doesn't matter what talking heads tell you on the televitz.
Man is not a learning animal. It is an urban myth that the majority of mankind can "think" and "reason" and "learn." The evidence shows, they don't and they can't. They are more like animals, stuck in the rut of their instincts, forever incapable of adaptation through any other mechanism than death from unsuccessful strategies. Many nations are taught by their lousy leaders they have escaped the historical cycle but the historical cycle shows these same nations are under a collective death sentence, time and time again. History will continue, just without them in it.