Posted by David Sherman on Thursday, September 20, 2007 at 13:56:30 :
In Reply to: Way to go multicolored money! posted by RSBuc in Toronto on Thursday, September 20, 2007 at 12:54:34 :
You got that right. Even "Cheap Chinese junk" is going to be a phrase from the past pretty soon. If the Euro, the Canadian dollar, and even the Russian Ruble are all rising, and the price of every metal and fuel known to man is rising, what does that really tell you? Nobody will say it but what's happening is our government is devaluing the US dollar. When the Fed dropped interest rates a couple days ago, that told everybody in the world that the US plans to inflate its way out of its credit mess. Buy everything you want now while your money's still worth something because it'll be the 1970s all over again pretty soon.
What's truly criminal about printing money like this is that it essentially confiscates the savings of prudent people who have worked their whole lives putting away money in the bank for retirement. By the time they go to retire, they think they're all set because they've saved up a lot of money, but then the government goes ahead and devalues the dollar, or prints money, or supplies liquidity to the credit markets, or whatever BS they want to call it, and the end result is all that money the old folks worked their asses off to save isn't worth much of anything. If the president just got on TV and said, "As of this moment, we have confiscated 3/4 of the money in everybody's bank account so as to pay off our deficit spending and bail out the investors who made risky mortgage loans", at least that would be honest. Instead, they'll confiscate the same amount of money via inflation, spread over 5 or 10 years, and nobody will know who to blame.
One good thing about this whole financial scam is that the price of silver's gone from $4/oz to $13/oz and all the mines around here are re-opening. The mines pay good wages and there's still plenty of ore in the ground, even though the Silver Valley's already produced over a billion ounces.
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