There is actually a "solution", albeit a very painful one. All that needs to be admitted is that the problem is grave and insoluble because the debts which are ALREADY on the books cannot ever be repaid. After that, it is a simple matter of letting the liquidation take its full toll as some of the debt is written off at pennies on the Dollar while most of it is simply eradicated as being totally unrepayable. Having done that, there is the further matter of exposing the malinvestments whose prices have been propped up for decades by the issuance of this unrepayable debt. All of this would certainly cause an instant and global economic and financial implosion. That having been said, there is no such thing as an economic good which does not have a market price. Leave the market free to find it and the wreckage can be cleared away in an astonishingly short period of time...
The global paper currency system is very young. It depends for its continued functioning on the belief that the debt upon which it is based will, someday, be repaid. The one thing, above all others, that could shake that faith, and therefore the foundations of the modern financial system itself, is a rise (especially a sharp rise) in the U.S. Dollar price of Gold.
Daily Spot Future $US Gold
With 25, 50, and 200 day Moving Averages
.....
Gold and silver ARE money. Interest rates merely reflect the fact that people prefer present goods to future goods. In a money economy, there is no economic good that people want more than money because they know that they can exchange the money for anything they want at any time. A VERY low interest rate on the reserve behind the money - which today is sovereign debt - gives the impression that the money is "sound" and will hold its purchasing power. That is why the interest rates on US Treasuries are routinely manipulated. The case for Gold (and silver) is even more obvious. Gold and silver are money that is nobody's liability and which cannot be created by a keystroke on a computer. They are the alternative to modern fiat and backed by government debt money. Any rise in their purchasing power as compared to what is used as money casts what is used as money into increasing disrepute. Obviously, those in charge of that money don't want to see Gold and silver rising in "price". Therefore, the price of Gold and silver is manipulated. It has ALWAYS been manipulated and will be until the day comes when it regains its function as money.
The global paper currency system is very young. It depends for its continued functioning on the belief that the debt upon which it is based will, someday, be repaid. The one thing, above all others, that could shake that faith, and therefore the foundations of the modern financial system itself, is a rise (especially a sharp rise) in the U.S. Dollar price of Gold.
Daily Spot Future $US Gold
With 25, 50, and 200 day Moving Averages
.....
Gold and silver ARE money. Interest rates merely reflect the fact that people prefer present goods to future goods. In a money economy, there is no economic good that people want more than money because they know that they can exchange the money for anything they want at any time. A VERY low interest rate on the reserve behind the money - which today is sovereign debt - gives the impression that the money is "sound" and will hold its purchasing power. That is why the interest rates on US Treasuries are routinely manipulated. The case for Gold (and silver) is even more obvious. Gold and silver are money that is nobody's liability and which cannot be created by a keystroke on a computer. They are the alternative to modern fiat and backed by government debt money. Any rise in their purchasing power as compared to what is used as money casts what is used as money into increasing disrepute. Obviously, those in charge of that money don't want to see Gold and silver rising in "price". Therefore, the price of Gold and silver is manipulated. It has ALWAYS been manipulated and will be until the day comes when it regains its function as money.
..............theprivateer
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