Burnt out on all the bad news

[UnderseaLcpl]

Originally Posted by SUBMAN1

So here's your good news for the day - you won't remember any of this in 7 years with the newest latest. They will all be worried about the stock market dropping below 20,000 points for the first time since 2010 and it will again be the biggest drop in points in history. Of course, when you analyze it, it won't be the biggest drop in 50 years as a percentage (which is what they should be basing their drop news coverage on) once again.
-S

I hope to God that you're right, but I don't see business as usual in 7 years. The effective nationalization of the banking system has serious ramifications.

A government fiat currency combined with a fractional reserve system spells only one thing; collapse of the monetary system through hyperinflation. And yeah, I know that this has been the case since 1913. The inflationary trends are since then have been apalling. But if we let the government take control of banks directly, the trend will accelerate to such a degree that the exploding money supply will far outpace the GNP.

The only solution, imo, is to disassociate banks from the state to the maximum extent possible. That means a strict 4:1 or 2:1 fractional reserve law, a currency that is actually backed by something, and some harsh legal penalties for banks being found guilty of fraud in civil court. After that, lassiez-faire.

Financial institutions would be far less likely to take on high-risk investments if they didn't have government backing through bailouts and competition-stifling regulation.

I sincerely hope that you have a some sound assets that will not be affected by the destruction of the currency, Sub. And I really mean that. It's not a jab or anything.

If I'm wrong in <thinking:hmm: > 5 years, you have my full permission to ridicule me for being an idiot. The state might forestall economic collapse or severe recession for that long, but I have doubts in their ability.

However, let's see what the situation looks like 30 years after that. I'm willing to bet that the U.S. is reduced to the economic and societal equivalent of Great Britain by that time. By that I mean high taxes, tremendous public debt, and a high degree of socialization.

I don't profess to totally understand economics. I don't even have a degree to wave about. But no one understands economics entirely, and that includes the "experts" in Washington and who run the Federal Reserve. But that doesn't keep them from trying to plan the economy.

As a last point, I will say this; Destruction of the financial system is a sure path to socialism. There are a lot of historical examples, so I won't bother to elaborate. I'm sure that you are well aware of them. This is no ordinary financial crisis, imo.


I guess we'll just have to wait and see, since neither of us have any real power to change state policy other than revolt.