Day Of Reckoning Imminent
Submitted by EconomicPrism.com’s MN Gordon (annotated by Acting-Man.com’s Pater Tenebrarum),
ZeroHedge.com
02/27/2016
Day of Reckoning Imminent
Unfortunately, that day is approaching. For without the anchor of a gold standard, financial imbalances and debt creation will continue to grow to commanding heights. Inflation, resulting in an implied default, will likely be more politically expedient than an outright default.
In the meantime, even if the dollar isn’t worthless – yet – its incessant variability is an incessant problem. How does one save, invest, and accumulate wealth when the dollar’s monetary base is continuously inflated?
When a carpenter measures the length of a cabinet as being 3 feet, he’s certain that the length measured as 3 feet will always be 3 feet. No more. No less. To the contrary, when a shopkeeper prices a 24-ounce loaf of bread at $3.93, he’s not certain that the value of one loaf of bread will always be equal to $3.93. In fact, in 1971 – the year the dollar’s last tie with gold was severed – he would’ve valued three 20-ounce loaves of bread equal to $0.89.
Has the usefulness of a loaf of bread, on a per ounce basis, really changed 1006 percent? Has its quality somehow become 1006 percent better? Of course not. Rather, the baseline used to measure the value of a loaf of bread has been twisted and contorted like a politician’s spine. The quantity of dollars in existence has increased. Accordingly, the unit value of the dollar has decreased.
The Rest…HERE
