VOLATILITY of the WORLD ECONOMY I have no magic solution Most individuals who write on a forum, blog or whatever take the time as they would like their view to be read and understood. Our passion is ‘coin collecting’. Are we able to rational – maybe or maybe not? We can then look to stocks, shares, bonds is the pricing rational? There are so many variants and tools, more and more creative financial tools used in the capitalist environment. One of the most volatile is the creation and printing of money “*FIAT MONEY”. I look it very simply – if we had 10 years ago 1b $ in circulation and today we have 4b $ the value of the $ in your pocket is 25c. We just lost 75% of the value of our money. [we feel richer, it is a balloon of illusions & smoke and mirrors we are waiting for shares and economic tools to give us a high return but it appear we are no longer getting the desired results and now fighting to stop ‘stagnation and deflation’] Land – Houses they are not very portable and you are still reliant on the economy which since we left the ‘gold standard’ has not been stable. * ’FIAT’ Definition Money which has no intrinsic value and cannot be redeemed for specie or any commodity, but is made legal tender through government decree. All modern paper currencies are fiat money, as are most modern coins. The value of fiat money depends on the strength of the issuing countrys economy. Inflation results when a government issues too much fiat money.
Posted on: Sun, 12 Oct 2014 03:58:15 +0000
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