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<p>[QUOTE=&quot;JoeSmith, post: 749042, member: 18021&quot;]Thank you for a very well written reply.&nbsp; You obviously know a lot about finance.&nbsp; Not that I agree.&nbsp; I believe that past economic crises have been caused, not averted, by fractional reserve banking, fiat money, the federal reserve system and other such tools. </p><p><br /></p><p>&quot;A common objective for all G-20 countries is political stability...no waving of pitchforks in the street please!&quot;</p><p><br /></p><p>That&#039;s pretty easy to achieve, all you need is a scape goat.&nbsp; To this day Herbert Hoover is blamed for the great depression more than FDR.&nbsp; It will be easy for other countries to blame the US, they already blame us for everything.</p><p><br /></p><p>&quot;A lot of the stimulus money (a huge number 700+ billion) that was printed is sitting in banks, not in circulation. Unless lending standards are eased and/or banks are willing to take more risks, that money isn&#039;t in play.&quot;</p><p><br /></p><p>I think the &quot;money supply&quot; is pretty irrelevent as regards supply/demand.&nbsp; Credit card limits should also be included.&nbsp; After all, if I really needed to buy something, I could always charge it if I didn&#039;t have the cash on hand.</p><p><br /></p><p>I remember when the Detroit Red Wings professional hockey team signed their first Russian player.&nbsp; The first time his wife went to an American grocery store, she wanted to buy ALL the meat they had.&nbsp; I married a russian woman, so I understand it.&nbsp; In russia, money didn&#039;t matter, because there was nothing to buy with it.&nbsp; Prices were cheap, but the stores were empty.&nbsp; Russians saw no value in saving money.&nbsp; During the carter years, my father put an 800 gallon gas tank in the ground, to make sure he&#039;s have gas.</p><p><br /></p><p>&quot;...you need inflation at a reasonable rate to grow any economy.&quot;.</p><p>There are 2 meanings of &quot;inflation&quot;, there&#039;s money supply inflation, and there&#039;s price increase inflation.&nbsp; You&#039;d think an increase in money supply would cause price increases, but its not necessarily so.&nbsp; No matter how much money everyone has, they&#039;re only going to buy so much milk.&nbsp; When there&#039;s a lot of demand for something that can be produced, the price often goes down because of increased production, i.e. computers, digital cameras, etc.&nbsp; Economies were growing before fractional reserve banking or fiat money.</p><p><br /></p><p>China currently holds 800 billion of our debt.&nbsp; That&#039;s $800 per person in china.&nbsp; That&#039;s bad enough, but we&#039;re not paying it, we&#039;re getting further in debt.&nbsp; The fact that other countries are as irresponsible as us might be good, but it has to come to a head.&nbsp; I&#039;m over sixty, and I&#039;ve never bought anything &quot;on time&quot; except houses.&nbsp; More and more people are seeing that debt is bad.&nbsp; But, our government seems to think we need to borrow our way to prosperity.&nbsp; I can&#039;t see that working.</p><p><br /></p><p>Thanks again, I do feel better.&nbsp; I now think the crash of the dollar may take longer than I thought.&nbsp; Fiat money is a Ponzi scheme.&nbsp; Ponzi schemes work fine, until people want to cash out.&nbsp; I don&#039;t think the G20 countries are going to let us take them down with them.&nbsp; When you eat toxic assets, it makes you toxic.&nbsp; Only gold will save us![/QUOTE]</p><p><br /></p>

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