There is an element in the readjustment of our financial system
more important than currency
more important than gold
and that is the confidence of the people
Franklin Delano Roosevelt
Replaced Herbert Hoover as US President in 1932
after government intervention failed to mitigate The Great Depression
If unemployed Americans aren’t buying
what unemployed Chinese aren’t making
have more than 6 million newly unemployed Americans
left at least 30 million Chinese workers unemployed?
Did the leaders of most emerging economies
indirectly confiscate their citizens’ savings
by lending money to developed economies
to keep currency exchange rates relatively low
to encourage more sales of manufactured goods?
Ponzi finance units must increase its outstanding debt
in order to meet its financial obligations
A transition occurs over the course of an expansion
as increasingly risky positions are validated by the booming economy
that renders the built in margins of error superfluous
encouraging adoption of riskier positions
Eventually, either financing costs rise
or income comes in below expectations
leading to defaults on payment commitments
Hyman Minsky
Have American legislators and the Federal Reserve
been abusing the dollar’s status as a reserve currency
to avoid overtly raising domestic taxation
by covertly taxing US dollar denominated assets like oil
by over-printing money?
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