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Napanee, Ontario | They are certainly doing the same thing over and over again - printing money instead of swallowing the pill.
But it's not insane when you look at the fundamental reason why -----> it's who does the pill swallowing.
Letting it go, and unleashing the dam of across the board asset implosions means EVERYONE swallows the pill. This is what should have been done in 2008. But who gets hurt the most? The folks who own the assets. Average Joe doesn't own much of the stuff that is going to crash and burn. The key here is BONDS - there would be a global default, which like Alberta says below, will foster a revolution and total reconstruction of the system - with everyone starting from the same level.
However, Supporting inflated asset values with continual currency debasement, and stealing purchasing power from the peons stuck in fixed incomes who can't afford those assets, supports the bankers (asset owners) and hurts the Joes. Which scenario do you think the guys in charge prefer?
Yes, this has been the status quo. Yes, It cannot last forever. But the evidence we have seen thus far is that they are going to try. And by virtue of that, it effectively means continuing depreciation of currencies against investment class assets until currencies fail.
And until then, the MO is to rob as much tangible wealth from the people and consolidate more and more of it in their hands until the currencies collapse and they 'reset' the system. And unlike above, in this scenario everyone would not be starting from the same level. THAT is why they hate deflation so much. Instead of a one-off bullet like above, the collapse is administered through the currency, in contrived doses over time, onto the people, through continual erosion of the wealth - dollar purchasing power. The people buy less and less real wealth with their FIXED dollars each year.
the frog in boiling water scenario.
Edited by OldMcdonald 10/9/2014 13:57
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How'd You Guys Enjoy your Dollar rally Pow-wow?
