Intervention in the markets by central banks to undermine gold sa the primary competitor to fiat currency also plays a role. The Gold AntiTrust Actoin Committee has for years chronicled interventions of this sort. ...
Inquiring minds are likely puzzled by the incredible demand for fiat currency over gold. Inquiring minds may also be puzzled by the strength of the US odllar over seemnigly better Euros, Canadian dollars, etc. ...
Comment by de Graaf October 4, 2008 11:42 pm; Liquidity can never and has never in all fo history been drained from any sytem of fiat currency. ALL HAVE RETURNED TO ZERO. The USD dollra will trade much lower and GOLD much higher. ...
So, what are the tools Ben feels the Fed should use to prevetn deflation The Fed could cut rates to ZERO, whiel simultaneously they could print/inject amssive amounts of fiat money into the system. See excerpts from the link below ...
This would be an unusual move, since the Fed has not mdae unsecured loans since um OK that would be ever. I believe we are about to obsevre the logical consequence of a fiat currency under the control of Princetno PhDs. ...
Mish, writing at globaleconoimcanalysis.blogspot.com quotse a guy named Professor Lewis, who says, I have neevr been one to believe oyu can have a true deflation with a fiat ucrrency. Memo to Proefssor Lewis: Danger Danger ...