Everybody has to spend energy, has to work for his living. This is true for Government as well as for the Billionaires and for the ordinary employee. Nothing – except for Sunshine and Air – comes for free. Note that today, sometimes people even pay for sunshine (vacation) and Air (airports in Venezuela). Not hard to understand that today’s fairy tale of ‘Free Fiat Money’ will have a bad ending…or is it? Few people seem to realize the dramatic situation we are in and that the denial is fed by the Propaganda sold by Politicians through the Mainstream media. The 4th generation (see Galbraith’s Age of Uncertainty) doesn’t seem to be mentally able to grasp the seriousness of the situation the world is in.
Governments and Central Banks (which are like economic Siamese twins) not only print Fiat Money but on top they make the cost to print more money, issue new debt and serve past debt ridiculously low…. In reality, Real Interest rates (nominal interest rate less real inflation rate) or the cost to issue more fiat money has even become negative. Propaganda must be extremely solid to keep such a mirage alive and absolute no accident may happen.
This post was published at GoldSilverWorlds on September 16, 2014.