As fiat currency dies a slow death, and takes the efforts of the majority of the working class to the grave with it, we can take a step back and look at the reason for fiat currency's existence. Control.
Who is this man, Ben Bernanke, and what kind of shoulders does he have? Is he a great deep thinker…a renown philosopher in whom the world's people could have confidence? Is he a captain of industry…a man who has proven that he can lead men and run a profitable business? Is he an investment wizard, like Warren Buffett, with billions of dollars as testament to his understanding of the world of money? Is he even a powerful politician or an acclaimed statesmen, who can at least pretend to solve the world's problems by threats and force?
"It's either control or money," says our friend John Henry. John made a fortune out of a simple insight. If corporations would give up control of their legal problems, they could save themselves a lot of money. John takes on their legal challenges and handles them as commercial matters; he doesn't particularly care whether they win or lose the case, as long as the net cost is lower. He shares the savings.
"But a lot of companies don't really care about saving money. They don't want to give up control. Or, more precisely, their legal team doesn't want to give up control. So, they end up spending more money."As the control is lost, a real existence will fill it's void.
Control or money. That is the choice. An economy functions best with no one in control. Central planning doesn't work. A little bit of it is a drag. A lot is fatal.
But people don't like it when things are "out of control." And that's the problem with capitalism. It is always out of control. At least, it should be.
Yesterday we got word that housing went down in the last quarter — making 17 straight quarters of losses. Homeowners are down about $7 trillion…and still sinking. New building permits are down to a 15-year low. Sales have not been this low in a generation.
As for unemployment, the numbers are shifty. Most of the improvement in the unemployment rate comes from the feds' taking people who can't find jobs off the list of those looking for work. But layoffs are increasing…and it is now obvious that most of these jobs will NEVER come back.
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