Irredeemable Currency Is A Roach Motel

By Keith Weiner  – Re-Blogged From Gold Eagle

In what has become a four-part series, we are looking at the monetary science of China’s potential strategy to nuke the Treasury bond market. In Part I, we gave a list of reasons why selling dollars would hurt China. In Part II we showed that interest rates, being that the dollar is irredeemable, are not subject to bond vigilantes. In Part III, we took on the Quantity Theory of Money head-on, and showed the counterintuitive property that, the more dollars are out there, the greater the demand.

Now in this essay, we will tie this all together.

You could say it in one sentence: the regime of irredeemable currency has unintended consequences. We often say that we do not prefer the term “unintended consequences” because it puts the emphasis on the alleged intentions of those who perpetrated it. As we discussed in another recent article, John Maynard Keynes’ intentions really were evil.

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The Fiscal Grand Canyon

By Jeffrey Lewis – Re-Blogged From http://www.Silver-Phoenix500.com

The cycle of hyperinflation is already upon us. It was set in motion long ago.

We are in the ultimate conundrum. Politically, the US Government, Treasury, and Central Banks must satisfy – pay for – unfunded liabilities and promises. But the “money” is simply a desperate conjuring meant to keep the doors of government open.

The dollar as a concept is temporary and limited. Many outside the mainstream have observed ubiquitous evidence that the end is near. We know it’s limited because history shows this to be true. All fiat currencies, all world reserve currencies eventually died.

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Fed’s Full Normalization

By Adam Hamilton – Re-Bloged From http://www.Gold-Eagle.com

The US Federal Reserve has been universally lauded for the apparent success of its extreme monetary policy of recent years.  With key world stock markets near record highs, traders universally love the Fed’s zero-interest-rate and quantitative-easing campaigns.  But this celebration is terribly premature.  The full impact of these wildly-unprecedented policies won’t become apparent until they are fully normalized.

Back in late 2008, the US stock markets suffered their first full-blown panic in 101 years.  Technically a panic is a 20% stock-market selloff in a couple weeks, far faster than the normal bear-market pace.  In just 10 trading days climaxing in early October 2008, the US’s flagship S&P 500 stock index plummeted a gut-wrenching 25.9%!  It felt apocalyptic, the most extreme stock-market event we’ll witness in our lifetimes.

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The Twilight of Cash?

By Andy Sutton – Re-Blogged From http://www.Silver-Phoenix500.com

Many decades ago you could walk into almost any bank with a bundle of cash and exchange it for a predetermined amount of gold and/or silver. Cash was used because of its portability, light weight, and the confidence of the citizenry that it was as good as gold. I’m sure you already know where this is going. Fast forward to present day and look around you at the plight of cash. It is now redeemable for nothing, is essentially worth nothing, has zero intrinsic value, and despite ludicrous measures, is rather easily counterfeited. So the question I’m going to pose is this: Why oh why would banks, the USGovt, and the global establishment want to outlaw and abolish something that is already a proxy for slavery and servitude? The dollar (and all paper currency for that matter) has already fulfilled its predestined purpose. A dollar buys a nickel’s worth – quite literally – and still people will break their backs, sacrifice their families, and even take the life of another all in the pursuit of pieces of paper. Why is the establishment so against cash?

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