Saturday, October 02, 2010
The Death of Fiat Money
It is a very quiet Saturday morning Kever Benjamin City. Half asleep I focus my mind of how to invest and I dream of building a fortress in the desert with money I take from a friend's account. Then I return the money without being noticed. I wonder if I it is ethical and wake up to continue the meditation.
A new consensus if being formed in the financial world: The Dying of Money. It says there is a worldwide competition to devaluate fiat money and gold (and silver) are the islands where investors ("rats" in the parable) can relax. While the Zero Hedge article (see link) seems logically solid, the fact is that the worldwide fiat money debasement is being carried out in a managed/controlled way by Benzi Bernanke and no hyperinflation is in sight. As people gets used to live in an inflationary environment, confidence may return and gold may return to less hysterical levels. I dont know.