awake
10-20-2010, 05:04 PM
"When a sufficient inflationary potential has been laid
up by the government in all the available reservoirs, that is
all that is necessary. If the simple desertion of the money
becomes widespread or universal, the latent inflation surfaces
in the form of disaster. The duller the holders of money wealth
are, the longer the government can go on storing up inflation
but, by the same token, the more cataclysmic must the eventual
dam burst be. The Germans were among the dullest and most
disciplined of all holders of money wealth, and this alone
permitted the government to build up so huge a pool of unrealized
inflation before the burst."
"The point to be taken to heart by any American government
is that the degeneration of an inflation into a catastrophe
is not the willful act of the government. A government does
not remain safe from disaster simply by abstaining from extreme
misdeed. No government collapses its currency because
it wishes to or because it flagrantly does not care. When at
last it sees the choice, it has no choice. People take over, and
the government is relieved of its command. Neither is a
government safe because the point of mutiny is still far off.
When once a government embarks on the course of monetary
inflation, it is forced ever forward by the iron Law of the
Exponential Inflation. The government is trapped between, at
its back, the money wealth and the necessity to mine from it
at an increasing rate, and, before it, the necessity that the
holders of money wealth voluntarily permit the mining. No
matter how distant they may be, revolt of the creditors and
inflationary collapse are ultimately certain unless at some
timely moment the government and the people elect the
supreme act of self-denial by stopping the inflation and swallowing
the accumulated stores of hardship and injury. Oh how
we earn an awful fate, when first we practice to inflate."
Dying of Money - Jens o Parsson
When the dollars come marching home it will be like a tidal wave after a dam breaks. An economic storm of epic proportions. I believe that the aftermath could very well be the final breaths for capitalism, as it will be nearly impossible to stop the rush to condemn it for the crimes of interventionism.
Bernanke doubled the money supply in a week, and is literally filling the reservoir by paying interest to the banks to hold their reserves with the Fed. When the banks loose the fear to lend, or are forced, the dam breaks.
up by the government in all the available reservoirs, that is
all that is necessary. If the simple desertion of the money
becomes widespread or universal, the latent inflation surfaces
in the form of disaster. The duller the holders of money wealth
are, the longer the government can go on storing up inflation
but, by the same token, the more cataclysmic must the eventual
dam burst be. The Germans were among the dullest and most
disciplined of all holders of money wealth, and this alone
permitted the government to build up so huge a pool of unrealized
inflation before the burst."
"The point to be taken to heart by any American government
is that the degeneration of an inflation into a catastrophe
is not the willful act of the government. A government does
not remain safe from disaster simply by abstaining from extreme
misdeed. No government collapses its currency because
it wishes to or because it flagrantly does not care. When at
last it sees the choice, it has no choice. People take over, and
the government is relieved of its command. Neither is a
government safe because the point of mutiny is still far off.
When once a government embarks on the course of monetary
inflation, it is forced ever forward by the iron Law of the
Exponential Inflation. The government is trapped between, at
its back, the money wealth and the necessity to mine from it
at an increasing rate, and, before it, the necessity that the
holders of money wealth voluntarily permit the mining. No
matter how distant they may be, revolt of the creditors and
inflationary collapse are ultimately certain unless at some
timely moment the government and the people elect the
supreme act of self-denial by stopping the inflation and swallowing
the accumulated stores of hardship and injury. Oh how
we earn an awful fate, when first we practice to inflate."
Dying of Money - Jens o Parsson
When the dollars come marching home it will be like a tidal wave after a dam breaks. An economic storm of epic proportions. I believe that the aftermath could very well be the final breaths for capitalism, as it will be nearly impossible to stop the rush to condemn it for the crimes of interventionism.
Bernanke doubled the money supply in a week, and is literally filling the reservoir by paying interest to the banks to hold their reserves with the Fed. When the banks loose the fear to lend, or are forced, the dam breaks.