Functional Economics – Getting Your House in Order

Old Habits Reappear Fighting the Fear of Fear Growing Conspiracy Myself Is after Me Frayed Ends of Sanity Hear Them Calling Frayed Ends of Sanity Hear Them Calling Hear Them Calling Me – Frayed Ends of Sanity, Metallica
Many of you have are aware of the incredibly fragility in the world financial system. Most have seen it coming for some time. Many of you saw it all coming before the great crisis of 2007-2008. Some of you saw it before the “Dotcom” crash. Perhaps a few of you saw it all before the Savings and Loan crisis.
Very few remember the Penn Railroad bailout, and the lead-up to the end of Breton Woods. And yet, with in each cycle, we have yet to see a scorched earth clearing. An actual deflation leading to the end of the dollar.
The year 1971 was an important turning point but served, ultimately, as only the culmination of a long battle between banks and politicians. In the end, it was a banking play to free up any dollarization of the international banking space.
From the rebuilding of Europe to the development of resources in South America and elsewhere, this was the major windfall for the giant banks. Penn Station was the original post World War II prologue to 2008.
The Dotcom crisis was averted by lower rates. Blame was placed at the altar of the ludicrous no-revenue start ups. The Lehman crisis left us with the emergency measures in place to this day in the form of zero interest rates (ZIRP) and quantitative easing.

This post was published at Silver-Coin-Investor on Oct 26, 2014.