Unsound Money Has Destroyed The Middle Class

[DamianTV]

http://www.zerohedge.com/news/2016-0...d-middle-class

Authored by Bonner & Partners' Bill Bonner, (Annotated by Acting-Man's Pater Tenebrarum),
Duped and Distorted

When you start thinking about what money is and how it works, you face isolation, shunning, and possible incarceration. The subject is so slippery – like a bead of mercury on a granite countertop – you become frustrated… and then… maniacal.





You begin talking to yourself, because no one else will listen to you. If you are not careful, you may be locked up among the criminally insane.

We’ve been thinking about money for the last couple of months. It has become our favorite subject. That is why people edge away from us at parties. Our family finds novel ways to change the subject.

“Whoa… sorry to interrupt, Dad… but isn’t that a flying saucer?”

Undaunted, we press on. We think we’re onto something important. We have come so far; we might as well go the whole way.

Economist George Gilder’s new book, The Scandal of Money, came as an unexpected reinforcement. He has been thinking about money, too. But he seemed fairly normal in Las Vegas last week. No facial tics. No babbling or paranoid delusions.

Gilder has come to much the same conclusions from a different direction. It is not real money. It only pretends to be. It has duped the entire world – and distorted the entire global economy.


Neither Cash nor Gold

We’ve already connected most of the dots. Today, we draw a new line from this new dollar to the impoverishment of the middle class. It explains why even Donald J. Trump – a man with none of the qualities you would normally look for in a chief executive – is the Republican presidential nominee.

The phenomenon is teased up for us by one of our own dear readers, who writes:

“Dear Mr. Bonner, you are brilliant. But you are missing a very important piece of the puzzle. As someone that had the unique experience of watching a whole economy transformed from a free market economy to Communism (the state centralized economy Cuban experiment under Fidel Castro and his cronies), I can testify that ultimately neither cash nor gold matter.

There is no shortage of paper money in Cuba. But there is nothing to buy with it. All the money in the world and all the gold in the world cannot buy you a cup of coffee, if no-one is willing to produce it.”

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[kfarnan]

It doesn't take a book to know the diff. of, sound money and unsound. It's not complicated.

[LibertyEagle]

That and interest rates being zero. Any money you had spent years saving, just goes up in smoke.

[oyarde]

That and interest rates being zero. Any money you had spent years saving, just goes up in smoke.

My savings account pays 0.01 % .

[Zippyjuan]

That and interest rates being zero. Any money you had spent years saving, just goes up in smoke.

Bank account interest rates have always been below the rate of price inflation.

[oyarde]

Unsound money is a negative .

[DamianTV]

Bank account interest rates have always been below the rate of price inflation.

Are you trying to advocate for both the Federal Reserve and Unsound Money? Sure sounds like it to me.

[Zippyjuan]

That was true even under a gold standard and no Federal Reserve. It is a good reason to get rid of debt if you have any.