7 replies
  1. Dennis says:

    Well said, and it certainly fits my assessment of our predicament. What I’d like to hear from you is your strategy for balancing the various mega forces at play here. For, as much as I hate Keynesianism, I have to agree with this purported quote that “Markets can remain irrational longer than you can remain solvent.”

  2. tyonker says:

    Interesting concepts, irredeemable currency on the one hand has no value, garners nothing for it’s time value, and yet we still all need it. The US Gov creates untold gobs of it and somehow makes it citizens responsible for it.

    Great lesson on the fact that value is mostly in the brain of the observer. The lesson appears also to be that value is created by the strong.

    The sad truth is that as a country the US’s strength is waning. Isn’t it amazing how long our dominance is lasting? We can still help the Euros prop their bonds with gobs O’ dollars, created out of pixie dust.

  3. Keith Weiner says:

    I am working on a paper to discuss the issues of irredeemable paper money more deeply. For now, let me say that Japan is in the same boat. They, like the US, still have a robust bid in their bond market. They, like Europe, are nearing the end of the line.

    Nico: I will have to leave interest rates to another discussion.

    Dennis: I agree, there are trillion-ton opposing forces at work here. I plan to address the ever-rising stock market another time.

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