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RE: Demonetizing Money

in #busy7 years ago

A lot of our monetary trust comes down to our belief in the government. This is a problem for the fiat world since people are going to realize, over time, that our algorithms are more trustworthy than their governments; or even worse (for them), more trustworthy than their central banks.

This may come sooner than most people might expect. The 2008 financial meltdown came very close to breaking the system. The Fed Chair and the Secretary of the Treasury were white-knuckle panicked. They pulled a rabbit out of the hat with TARP and massive QE.

Next time, they won’t have that option. The bond market would collapse.

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I doubt it. The "they will collapse" is a naive notion that thinks the bankers have any interest in losing power by letting such things happen, especially if they can help it, and why can they?

https://www.npr.org/sections/money/2010/10/04/130329523/how-fake-money-saved-brazil

There's always another option and more rabbits in the hat considering that they have nobody to answer to and are immune from prosecution, while many will see that as hubristic, it's actually ultimate freedom (short of being chained to their precious goose). Nobody is gonna take their magic hat away.

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That story from Brazil was fascinating. I’d like to think that the American people weren’t that gullible. But look who’s in the White House. 😏

Let's recount how many times the "Government" went bankrupt. (Governmental Service Corporation to be exact).

http://annavonreitz.com/lazymansguide.pdf

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