|
Napanee, Ontario | Thanks for the link Maize.
Yes Rick, it would be great to let the markets price rates.
Except apparently no one can ever let the precious bondholders take a loss this day in age.
You invest in something, you take a risk. If You take a risk, you can lose your money. It's a simple fundamental principal of finance. Except in this juncture in time we are circumventing this tenet because our governments and largest financial institution are above the rules of finance and common laws of the land.
Two tier application of the law: You can't pay your debts - you are liquidated. If the gov't or big finance can't, they get printed money to make it so they can.
The scam here isn't rocket science. They are connected, you arn't. If they don't have to take the loss, the people will through their currency. It's a scam as old as time and the advent of credit and mediums of exchange. It happened in Rome, Argentina, Zimbabwe, Wiemar.... and now it's happening in every major economy in the world.
Sure, it would be great if we let the rates float and the chips fall. It would have also been great back in 2008 too. The market isn't dumb. If you let them price the rates, these institutions -read major governments and over-leveraged banks - will default and there will be full global economic collapse. Gosh, bondholders might actually have to take losses on bad investments. Governemtns who borrowed without abandon will get shut out of the credit markets, and not allowed to overspend anymore. Maybe even our system of credit gets reformed. Crazy ideas, i know.
People have probably seen the Mises Quote:
"There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved.""
"Later" has been the word of the last 6 years - we hear it out of the FED every 5-6 months. If they raise rates and stop QE, we will have it sooner, and massive failures now. I have my bet which one it's going to be again.
Edited by OldMcdonald 8/24/2015 21:10
| |
|
Santelli Rant
