Posted May 16, 2013 by Martin Armstrong
The trend in the hate mail is getting interesting. Now just the typical mantra concerns how money has to be tangible like some savings account yet investments will rise freely in terms of this money and of course wages will also rise while money is fixed and always valued the same. Not sure exactly how you accomplish all of this with constant tangible money. If money has a mythical fixed value, then how can anything else rise in terms of money? Doesn’t that mean money will still rise and fall in purchasing value? Perhaps they are really asking for Communism where you own nothing, earn nothing, just do as the state dictates.
Of course the the real creation of money is the VELOCITY created by lending and saving. If we also eliminate bank reserves and lending as many argue then we eliminate mortgages, all debt and hell we are back to the stone age. One email reads:
“How can you not see it? The politicians are praying for help, they are on their knees. But the ECB won’t help.
So, what lies ahead is smaller government, and better times. Yes, reality first, meaning a grand depression. No more big state free stuff. Realistic tax rates.
But finally some honesty. Finally honest money. NO MORE QE. A stable currency, soon to be fully reserved with physical gold.”
Don’t see how the politicians are praying the ECB helps when they ECB is controlled by them. The last time I checked, QE poured a lot of cash into the system, but because the dollar is international the money failed to create domestic inflation and gold declined. Not exactly sure where all the logic is in this line of thought. Guess we should go back to the 60s with free love and while we are at it and just party and stop worrying about money.
So if money is tangible, when gold declines does money buy less? Or perhaps we pass a law to prevent a gold decline and execute anyone who trades below a predetermined price. Curious.