Funny thing is with over 99% of money being electronic, the ultimate potential for deflation is exponentially times worse today than in 1929.
By Daniel at 18 November, 2008, 9:05 pm
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1929-1933 saw deflation because the central banks had to contract the money supply because they lied to the common man about how much “gold” backed currency that they lent out in the roaring 1920s. THis was only a multiple of 9x or more(beginnings of fractional reserve banking) since gold, in theory, backed up the money.
This time, due to “over-inflation” of the money supply through debt and credit and CDs and etc., as well as money being backed by word of mouth, we have the ultimate potential to lose a vast majority of the money supply in short time, and the banks/government can take away our 401ks and IRAs very quickly by just letting the market naturally collapse on itself. They are playing the game of “propping it up” to save the little guy, but they are just lining their pockets and saving their rich friends….
Yes, cash is king, but having just a little in gold and silver is nothing to be laughed at… especially if the other countries of the world get fed up with the US global control of the ecoonomy… which right now IS the new world order considering how much we control
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