- Tue Jul 31, 2012 1:03 am
The $16 Trillion is irrelevant. The Fed was acting as the lender of last resort, as well it should.
Of course, you have, or feel that you have, little confidence in the money, but in actuality you take it and give it for real payment for goods and services every day.
Of course, your everyday natural actions are likely to be disconnected from your lack of confidence about the future. Many Americans feel that things will not go well in the future, but it is hard to say.
Our debt is almost irrelevant. Japan has twice the debt that we do and is loaned funds at very low rates (the bond market is confident it will get paid back in Yen that is worth something). Same is true in the US. The market completely disagrees with your lack of confidence, and they have real "fiat" money in the game.
The gold standard is what is screwing Greece, Spain, Ireland, Portugal, and Italy at the moment. The euro is the stand in for gold. The gold standard means that a country is not in charge of its own financial destiny.
Look, I completely disagree with your position on finance, debt, the economy, and the Fed. I may be wrong, and you may be wrong. We'll see what happened.
Right now I feel that the Republican Congress is creating the financial problems in this country and the Fed isn't doing enough to counteract them by sticking to its mandate to increase inflation.
Davis Straub at the Oz Report