User 148292

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    • Grading Paulson and Bernanke [view article]
      chiotlune,you are so wrong about Ben Bernanke .He is the furthest from monetarism that it is possible to be.Hence the financial crisis although Alan Greenspan and some before him must shoulder some of the responsibility also.I recommend you read FREE TO CHOOSE by MILTON and ROSE FRIEDMAN>They are monetarists and monetarists are usually called in to rectify the mess the inflaters cause and to restore the western economies back to financial health. Aug 23 09:34 AM
    • Which Inflation Is It Anyway? [view article]
      Regarding promises to pay,letters of credit etc .Several points- People stop believing the promise to pay the bearer when the bank prints too much extra money unbacked in an easily understood way -which leads to financial crisis.Politicians do have a role to play in keeping the belief going.One of the first acts of William Wallace in the 10th century apon becoming protector of Scotland was to bring Scottish wine merchants to court to pay their supplyiers in Bordeaux after they defaulted on their accounts and alot of reassurance was needed before they would let the scots have any more wine on credit.What a very high standard of writing on this comments page I must say! Aug 02 04:57 PM
    • Which Inflation Is It Anyway? [view article]
      Well put ozzy 43!This is also a form of malinvestment if overindulged in,which of course causes bubbles in its own way and can depress profitability in the private sector and therefore proves the adage that public spending displaces private spending if indulged in excessively. Aug 02 11:02 AM
    • Is the Gold Rally Really Over? [view article]
      One more point on the subject of printing copious quantities of new money .Could this be seen as a form of taxation in two ways1Someone is paying interest to(the government?)or quazi governmental body on all this new money that has just appeared from nowhere2By the devaluation that follows old people ,children and other trusting people are getting heavily taxed by the value of their savings declining.Its a double whammy.If we start to look at the finance houses and banks as an extension of the state or essentially part of the state then the proportion of gdp raised and spent by the government rises dramatically into the realms of sociallism and we all know what happens to socialist(command)econ... is a lot more than a financial crisis it is a crisis in which the size of the state is increasing to unsustainable proportions and complete collapse looks possible in the medium term,similar to the fall of the soviet union. Mar 29 09:13 AM
    • Is the Gold Rally Really Over? [view article]
      Gold is a store of wealth(ie surplus resources) during financial meltdown,irresponsible fiscal policies,war and other forms of instability.You may not be able to buy gas or groceries with gold right now but were the potential total collapse ever to occur you can be sure gold would get you whatever you wanted before dollars or anything else made of paper.Paper is only a promise and is not worth anything if the promiser is unable to deliver the promise.Gold however is a physical substance that you can carry around in your pocket and wont evaporate during times of upheaval like for example paper money,share certificates etc.Once the upheaval is over ,sure the price of gold will drop but youll still have the gold for the next upheaval if you keep it.It is liquid internationally and Im sure that you could buy any larger asset with gold anytime any place worldwide. Mar 29 08:31 AM
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