paper money on verge of collapsing ?

[mertle]

Could be it seems thinktanks starting to see this starting to become critical. With banks Fractual banking reserves getting more deluted. Countries more and more quantitive easing as solution to ease pressures but infact just delaying.

World economy pressure is now at breaking point fear is money could be on verge of collapse.

We seeing gold, silver and oil at highest levels. No doubt why as seems mad rush to can money those who got it.

Very good reads not nice very stark. These articles from thinktank Schlichter who been 19 years in the field.

http://papermoneycollapse.com/2012/0...vourite-asset/

http://papermoneycollapse.com/2012/0...banking-fraud/

http://papermoneycollapse.com/2012/0...covery-matter/

even there film comeing out The end of the road not linked to above its going to be about how money become worthless.

http://100thmonkeyfilms.com/endoftheroad/synopsis/


Mark Berger wrote about fractual banking collapse in 2009 about oil prices to blame the crisis. Although american aimed he makes valid points.

http://education.wallstreetsurvivor....Banking-System

Not expert in these things but are they right could this be the downfall of paper money. Have banks gone too far in fractual banking.

After reading it understand the method and understand why its necessary but has it been oversubscribed.

The printing more fake money actually going to just sink it like titanic at what point does economy sink. Have we already hit the iceberg so the wealthy are bailing.

[watzizname]

You can't miss what you never had, least that's what I'll be telling myself

[mertle]

meant say fractional reserve banking.

Worry is this genuine issue why we in mess. He talks methods to avert last crisis just delayed it to another day.

Problem is how we to get out it world always been a boom or bust its how banking system lives. Even he dont call for the end of fractional reserve banking himself as its stimulates economy. So effect its false economy we lived in this bubble. Banks become too greedy took on too much debt.

Cameron wants more debt to stimulate growth and spending as he wants BOE to lend more. Now what reading see why they reluctant. However how do we turn around economy without creating debt.

Now the system allows growth and economies to blossom but have they gone too far.

He talks that they should not quantative Ease as this makes things worse by delution or what he calls elasticity of money. When wrote about spain impending move of 1 trillion euros.

Why if he is correct are those who can effect change listening or is it something beyond repair.

He just posted new article starting to think he very astute.

He talks why he not put solutions to problem as poster replied to his articles.

http://papermoneycollapse.com/2012/0...ney-and-state/

Although my worries deregulation he talks to me is just as dangerous. Whole reason why regulation brought in was bankers notorous capitalists. Anybody who saw the vid on banking system on uk back in recession. That vid shows we should be very sceptical to deregulation of banks.

Basically both are as bad each other either polititians or bankers. That vid the cynic in me this the bankers goal all along.

http://www.cableforum.co.uk/board/35419293-post54.html

---------- Post added at 14:11 ---------- Previous post was at 14:04 ----------

I always wondered if change of currency would be only solution.

What impact did we see when we moved from old currency to what we have today. I was far too young to understand its effect only those old enough understand it would know.

[Traduk]

I have not read any of the articles or looked at the video because I very much doubt that there is anything new to be added to conclusions formulated over two decades ago.

On mass humans are the most stupid species on the planet because with a variation on a theme we repeat the same mistakes over and over and never learn.

"Fiat" money which was brought into being in the early '70's is a Ponzi scheme de-linked from tangible asset values. It was brought in to remove the constraints of tangible value by the expansionist desires of Nixon.

Unfettered money has been allowed to float so that values attached to hard assets (houses etc) bear absolutely no relationship to construction cost, and values etc etc etc. The entire relationship between money and worth has long since vanished into a long standing cycle of greed and stupidity.

The thrust of the author is correct. Fiat money is heading for its long overdue meeting with Armageddon but don't hold your breath waiting for it because the fat cats (or rats) need loads of time to leave the sinking ship.

Most of the QE money or a heck of a lot of it finds its way via banks into private wealth which I assume is then rapidly converted from that endangered paper species into hard assets (property) for the rainy days ahead.

For us mere mortals, as much as we can see or read about what is going on we can nothing about it. The only consolation we have is that the politicians we have supposedly democratically elected have the ultimate charge from their paymasters to keep civil order. Nobody is rich in a country riven with civil disorder so hopefully a solution of some description will be found before the masses become revolting

[MovedGoalPosts]

It's quite simple, our systems of currency, both by country and world economies are now founded on trust rather than a tangible asset. Often the basis of this trust is flawed as we saw with the first problems of sub prime mortgages that were secured and sold in batches based on some theoretic calculation that hadn't been scrutinised.

For corporations and governments currency and value is largely electronic held on some computer spreadsheet. The reality is if someone now calls in a debt and expects payment, certainly at the international conglomerate and country level, that will trigger a domino effect amongst so many others who have in turn loaned their non existent electrons. We've seen this with Greece.

If money literally grows on trees then all the quantitative easing or whatever we keep hearing of where national banks keep releasing billions into economies, is achievable. Realistically money does not grow on trees, and the rainforests are all getting cleared.

[alferret]

Doom & bloody gloom!

forget money let's get back to the barter system

[mertle]

Originally Posted by martyh

forget money let's get back to the barter system

lol not sure that would be solution.

Possible like this fellow said we must go back to gold standard.

How we get there could be messy way.

Who dictate the value this was interesting

Presently, the US government sits on 260 million ounces of gold. At the present gold price of $1,655 per ounce, we are talking $430 billion. The monetary base is presently $2,673 billion; M1 is $2,220 billion and M2 minus money market funds is $9,163 billion. The gold hoard is thus only 16%, 19%, and 5% of these money stocks, respectively. Hardly a proper gold standard but it could be a start.

Rob

Excellent point about the transfer debt which caused big issue. I remember reading something about selling mortage debt several times over spliting it so it had high risks with low risks selling on. Could not remember what it was called until you raised it.

May as well call smarties or marbles currency who with me as it what market deems currency. Just trying get in first before money men

Originally Posted by mertle

lol not sure that would be solution.

Maybe not on world wide scale but it works fine for me sometimes .A few weeks ago i needed a 2 new tyres on my van ,it would mean shelling out about £200 ,as it happens the owner of the garage where i normally go needed some building work doing so i did that and he did my tyres no money changed every body happy .I've done that on a few occasions with various people .I got a new 3 piece once doing that

I have now removed this afternoon's off topic discussion from this thread, useful though some of it may have been. Can we now please keep the topic in mind when posting replies.