Won't happen....Reader comment on: Bernanke Backlash Submitted by Fast Eddie (United States), Apr 9, 2013 09:48 As perverse as it may seem, there now exists a very strong conflict of interest between the existence of 'sound' money, i.e., money which has actual intrinsic value (such as gold or silver) and 'fiat' money, i.e., the garbage that Bernanke creates by the Trillions. Therefore, the federal govt will never permit the existence of any form of money in the future except for more fiat money because any other form would, eventually, due to free market forces, cause people to cease using the fiat money. It is similar to what has happened, and indeed is still happening in some third world countries, where black market goods have replaced the country's official currency for buying and selling things. Were it not for fiat money, we could not have the bubbles that the Fed now creates on a regular basis. The two biggest bubbles waiting to explode now are student debt and farmland prices, both of which are at unsustainable levels. A single acre of good agricultural ground in Illinois and Iowa now goes for as much as $12,000, which is sheer madness and fueled by the Fed's QE's and the Congress's totally irrational alternative fuels policies, i.e., ethanol. There are few certainties in life, but one certainty that you can take to the bank (pun intended) is that our government is going to inflate its way out of the multi-hundred Trillion dollar obligations it has taken on over the past few decades. Note: Comments are moderated by the editor and are subject to editing. Comment on this item |
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