In my opinion, the probability of a major conflict is inversely proportional to the trend of the efficiency of money… that’s my 2c worth… the efficiency of money is tracked by the Money Multiplier that today is below one… you do the math…
Our politicians can scream, shout, stomp their feet and hold their breath till they turn blue if we don’t allow them to print and squander more money but by observing this official graph, it is all for naught. The money is no longer contributing to expanding the real economy. And if money has lost its theoretical Keynesian traction, the political process dies and government becomes ever more insolvent…
So, when you are insolvent and your unemployment rate is increasing at an accelerating clip… what do you do… ?
In a similar situation, countries like Thailand, Pakistan or Bolivia for example, would have to call in the IMF. Can you see the USA or the EU calling on the IMF?
Well can you?
May 3rd, 2010 Addendum:
As I once again read this post, I am at the same time reading in today’s papers that Greece has finally been accorded a loan worth Euro145Million by a consortium of entities that includes the IMF… BWAAAAHHHHHAAHHAAAAAHHHH!!!!
Tags: bankruptcy, boondoggle, crisis, debt, deleveraging, fiat money, fractional reserve banking, implosion, inflation, leverage, money multiplier, money velocity, personal consumer expenditure, poverty, revolution, scandal, treasury, unemployment, war, white collar crime