Tag: monetary system collapse

Guest Post by Martin Armstrong

The only benefit of Bitcoin is that it is neutral. But it is insufficient for world commerce because it cannot be used for lending or credit, or you end up in the same situation where it is just leveraged – the very complaints about fractional banking. You deposit $100 in a bank, and they lend out $92, and then two accounts show the same cash. The money supply can be multiplied many times through credit. The nonsense that Bitcoin would replace the dollar as the reserve currency only shows that those people do not understand the world financial system. To accomplish that, you will destroy everything – mortgages can no longer be made, and the entire world is plunged into a truly monumental depression, sending us back to the Dark Ages.

Continue reading “The Coming New Monetary System”

Guest Post by Martin Armstrong

The collapse of the monetary system is the result of a comedy of errors. It boils down to the problem that governments since World War II have adopted Keynesian Economics whereby they took Keynes’ suggestion that they should run a deficit during a recession/depression to compensate for the fall in demand because people are hoarding their cash in times of uncertainty. The problem was that they merged that with Marxism and began to run deficits annually and then took the Quantity Theory of Money that claimed an increase in the money supply would be inflationary. So, they borrowed rather than printed falsely believing that they could spend whatever they wanted without it being inflationary.

Continue reading “The Collapse of the Monetary System – a Comedy of Errors”