Get Ready for a New Crisis – in Corporate Debt

Imposter Dollar
OUZILLY, France – We’re going back to basics here at the Diary. We’re getting everyone on the same page… learning together… connecting the dots… trying to figure out what is going on.
We made a breakthrough when we identified the source of so many of today’s bizarre and grotesque trends. It’s the money – the new post-1971 dollar. This new dollar is green. You can buy things with it.
Yes, it has lost more than 80% of its buying power since it was put in place. But still, it’s not so bad. Compared with the Argentine peso (current inflation rate: 47% a year), it is splendidly solid.
But the new dollar is an imposter. The old one was connected to gold at a fixed rate. And gold was anchored in the real economy. The new dollar has no gold backing.
Billionaire investor Warren Buffett believes it’s silly to pay someone to take gold out of the ground, and then put it back in the ground and pay someone to guard it for you.
But Buffett misses a vital point: Real money is essential to building real wealth. It’s what makes the economy operate smoothly. It helps us all decide when to buy and when to sell, when to invest and when to refrain from investing, and where to apply our scarce time and resources.

This post was published at Acting-Man on September 12, 2016.