Money Metal Explosion?
Monday, July 30, 2007 - FreeMarketNews.com
Jordan Roy-Bryne writing in financialsense.com's Financial Sense University:"For the first time in world history, every country is operating with a fiat currency. This is incredibly dangerous as there is little protection against the ravaging of savings and earnings by governments and central banks. Fundamentally, the various currencies are all the same. The Dollar, Yen, Euro, and Yuan are all pieces of paper that derive their value from public acceptance and government enforcement. Governments and central banks are playing a tricky game, a confidence game with the public. More dangerous, is that they are tempting the time-tested laws of economics. The price of gold, silver and all commodities will explode in all currencies if and when the market decides there is too much money in the global financial system."Joe Nicholson demonstrates in a post on financialsense.com that:"In the Q&A portion of his presentation Bernanke was explicitly asked about the relationship between money supply and inflation, and his answer was incomplete, if not outright evasive. What he concealed behind the smokescreen of academic terms was that the lag time between a massive injection of new money and a rise in prices throughout the economy can be extended and perpetuated, and more clandestine inflation perpetrated, if people believe hard enough that inflation pressures in food and energy are temporary and insignificant. "Couched in an appeal for better information in how to steer public consciousness towards that end, the speech was another shameless attempt to understate inflation. But this always means two things: one, there is and always will be inflation, and two, it should just be ignored by the public. The bottom line is that Bernanke's speech was exactly the sort of rhetoric you'd expect from a man prepared to undertake a massive devaluation to try and stave off a credit crisis." Staff Reports - Free-Market News Network
Jordan Roy-Bryne writing in financialsense.com's Financial Sense University:"For the first time in world history, every country is operating with a fiat currency. This is incredibly dangerous as there is little protection against the ravaging of savings and earnings by governments and central banks. Fundamentally, the various currencies are all the same. The Dollar, Yen, Euro, and Yuan are all pieces of paper that derive their value from public acceptance and government enforcement. Governments and central banks are playing a tricky game, a confidence game with the public. More dangerous, is that they are tempting the time-tested laws of economics. The price of gold, silver and all commodities will explode in all currencies if and when the market decides there is too much money in the global financial system."Joe Nicholson demonstrates in a post on financialsense.com that:"In the Q&A portion of his presentation Bernanke was explicitly asked about the relationship between money supply and inflation, and his answer was incomplete, if not outright evasive. What he concealed behind the smokescreen of academic terms was that the lag time between a massive injection of new money and a rise in prices throughout the economy can be extended and perpetuated, and more clandestine inflation perpetrated, if people believe hard enough that inflation pressures in food and energy are temporary and insignificant. "Couched in an appeal for better information in how to steer public consciousness towards that end, the speech was another shameless attempt to understate inflation. But this always means two things: one, there is and always will be inflation, and two, it should just be ignored by the public. The bottom line is that Bernanke's speech was exactly the sort of rhetoric you'd expect from a man prepared to undertake a massive devaluation to try and stave off a credit crisis." Staff Reports - Free-Market News Network
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