Jesse at Jesse's Cafe Americain has a magnificent 17 November 2008 post on "The Dollar Trap". As Uncle Sam learned in 1971 when he devalued the dollar from $35 per ounce of gold to $38, eventually, what must change will. Got gold? Get more. Got bonds? Hahahahaha! Read Jesse. Here's a link: http://jessescrossroadscafe.blogspot.com/2008/11/michael-hudsons-incisive.html.
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If you go into the store with your little golden eagle but there is nothing on the selves to buy does you golden eagle have any real value?
I did'nt follow Hudson a 100% but very interesting..."trickle down patter talk"...hahaha.
"Drawing a picture of a just-pretend world to rationalize Wall Street’s free lunch, Mr. Paulson sought to deflect the issue by postulating a series of “ifs.”
The Treasury’s $250 billion in bank stock would give lenders money that might be used to re-inflate the credit supply if banks chose to re-enter the commercial paper market and provide more mortgages on easier terms.
This trickle-down patter talk is what passes for neoliberal economic theory these days.
The fantasy is for banks to restore “balance” by granting more credit, increasing the indebtedness of bank customers so as to restore the housing market to its former degree of unaffordability.
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