Seek The Fiat $ Truth
Monday, July 30, 2007 - FreeMarketNews.com
More than one astute wordsmith has concluded that most of the people can be fooled most of the time. Ironically, as the Internet offers more information and, often greater transparency as well, people seem even less willing to sort out the truth then before.Jordan Roy-Bryne writing in financialsense.com's Financial Sense University:"By constantly increasing the credit and money supply, policy makers can postpone the natural recession but at a long-term expense. Recession is healthy and necessary as it bolsters the entire system by cutting the weak and the fat while allowing only the strong and efficient to survive. The economy is then stronger in the subsequent expansion. Postponing recession allows for imbalances to grow to unhealthy and unnatural levels. Moreover, over time it threatens the sustainability of the system."In his Hat Trick Letter, Jim Willie writes:"The strength of many factors is growing, not lessening, sure to amplify the power of damaging forces. Talk of a housing recovery, sector stability, lack of contagion, and assured containment will all be replaced by questions of when the destructive process will end, how low will housing prices go, how deep the bond losses will be, and what arenas might be spared. This is a systemic contagion of absolute proportions, in the great housing & bond bust. One could have written this script years ago, since the bust is always inevitable. Staff Reports - Free-Market News Network
More than one astute wordsmith has concluded that most of the people can be fooled most of the time. Ironically, as the Internet offers more information and, often greater transparency as well, people seem even less willing to sort out the truth then before.Jordan Roy-Bryne writing in financialsense.com's Financial Sense University:"By constantly increasing the credit and money supply, policy makers can postpone the natural recession but at a long-term expense. Recession is healthy and necessary as it bolsters the entire system by cutting the weak and the fat while allowing only the strong and efficient to survive. The economy is then stronger in the subsequent expansion. Postponing recession allows for imbalances to grow to unhealthy and unnatural levels. Moreover, over time it threatens the sustainability of the system."In his Hat Trick Letter, Jim Willie writes:"The strength of many factors is growing, not lessening, sure to amplify the power of damaging forces. Talk of a housing recovery, sector stability, lack of contagion, and assured containment will all be replaced by questions of when the destructive process will end, how low will housing prices go, how deep the bond losses will be, and what arenas might be spared. This is a systemic contagion of absolute proportions, in the great housing & bond bust. One could have written this script years ago, since the bust is always inevitable. Staff Reports - Free-Market News Network
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