Econonic doldrums worldwide, fiat currency cancer pains

The entire world is feeling the American fiat currency pain.

This is the end game for fiat currency. The dollar was based on faith in the government and the economy and the Fed, but the sustenance for the dollar has always been American productivity and actual production of goods and services. But the dollar and the Fed’s ability to manipulate MP3 and economic interference into the market has reached its limit. It always created artificial imbalances that often gave a false comfort of temporary prosperity, but always at the expense of a warp somewhere in the economy that snapped back at reality like a stretched rubber band.

There was the “irrational exuberance” bubble Greenspan talked about in the late 1990s that nobody talks about when they try to say Clinton did it, then that bubble burst causing the Fed to create what became a housing bubble with its interest rate and money supply manipulation with the cooperation of Congress, which of course burst again when the market imbalances reached their limit and turned it into a bust.

Relief at reaching some stability allowed some nervous return of investment, that is now creating a direct dollar bubble because people still think it’s safer than the worldwide financial house of cards that’s built on it.

But Soros, Geithner, China, much of Europe has already put us on notice that they plan to replace the dollar with some other world currency. If it’s another fiat dictate, that will be another bubble itself. But if it’s publicized as a “gold standard”, beware, because they have pulled a thousand such switch-and-bait frauds in the past, like with the dollar itself.

But then given an appropriate crisis to exploit, they may just decide to go for broke and declare the new cashless society and everybody carry this new slick theft-proof chip to buy or sell or else starve.

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