12-10-2013, 07:52 AM
to answer your question we need to go off island to the FED.
It has been pumping money (liquidity) into the system for the last 5 years....to cover the 2007 bank losses and the resulting shock to the system.
The Fed is the only entity printing or creating money in this country they also set interest rates they will pay on this printed/ manufactured money until it comes due currently at less than 1% "cheap money"
last I read we were printing $65 - $85 million a month into the financial system "bubble"
so for five years the money supply has been increased by that amount - making the cash in circulation less valuable. "FIAT money"
A hall mark of the fiat economy cycle is implosion when looses trust (bank run)
The average cycle of FIAT economies being 27-40 years depending on the pundit - the first was a chinese dynasty -
http://www.ronpaulforums.com/showthread....s-27-Years
Some ceos making the news because they are being paid in bitcoin .....
It has been pumping money (liquidity) into the system for the last 5 years....to cover the 2007 bank losses and the resulting shock to the system.
The Fed is the only entity printing or creating money in this country they also set interest rates they will pay on this printed/ manufactured money until it comes due currently at less than 1% "cheap money"
last I read we were printing $65 - $85 million a month into the financial system "bubble"
so for five years the money supply has been increased by that amount - making the cash in circulation less valuable. "FIAT money"
A hall mark of the fiat economy cycle is implosion when looses trust (bank run)
The average cycle of FIAT economies being 27-40 years depending on the pundit - the first was a chinese dynasty -
http://www.ronpaulforums.com/showthread....s-27-Years
Some ceos making the news because they are being paid in bitcoin .....