Real moneyFrom The Telegraph
The Royal Bank of Scotland has sounded a loud and shrill alarm this week, saying that they advise:
QUOTE ...clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks. "A very nasty period is soon to be upon us - be prepared," said Bob Janjuah, the bank's credit strategist. A report by the bank's research team warns that the S&P 500 index of Wall Street equities is likely to fall by more than 300 points to around 1050 by September as "all the chickens come home to roost" from the excesses of the global boom, with contagion spreading across Europe and emerging markets. UNQUOTE
As a working-class American nearing retirement, I watch in dismay as the Fed pumps hundreds of billions of dollars of "liquidity" into the banking system, accepting as collateral mortgage-backed securities of absolutely NO value. The American economy is rigged with bogus statistics and unemployment and inflation are about twice as high as the official figures. Every Fiat Monetary System fails. Fiat Systems have zero sustainability due to the fact that every single "dollar" or fiat monetary unit must be "borrowed" into existence. Since the entire circulation of the currency is totally dependent upon debt for its creation and expansion there comes a time when the economy can no longer sustain the debt-servicing requirements that burdens the productivity of the economy. That's where we are now. It has happened in a similar manner time and time again yet, these facts are all but ignored by the blind Central Bankers, Media and Government Economic Wonks of the world.
Just look at how Ron Paul, Mike Gravel and Dennis Kucinich were treated by media during his compaign. Often when it was their turn to speak, TV shows would interrupt for comments, go to commercial etc. In the end we'll see gold and silver, platinum and sustainable agriculture regain their status as having permanent value.
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