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<p>[QUOTE=&quot;InfleXion, post: 1319535, member: 29012&quot;]I believe Libya had zero debt under Gaddafi, but I&#039;m not 100% sure. I do know that they had 0% interest in loans, that every person in the nation owned their own home, that the government would pay for schooling, and that gas was under 20 cents USD per gallon. In any case, I would not argue against the USD being one of the best currencies to be in, if not the best, at least as long as it is the world reserve currency and the US can export its inflation. The only ones to rival it that I can think of would be the Yuan or the Singapore dollar. Certainly not the Euro, or the Swiss Franc which is now pegged to it. My point would be that when all currencies are being devalued, it doesn&#039;t really matter what they are in relation to each other. All that matters is the price of gold as a measure of the value. As for why people are buying bonds, I don&#039;t think many people are. Central banks are the only thing keeping those bonds from sitting on the auction block.&nbsp;&nbsp; </p><p><br /></p><p><br /></p><p>&nbsp;&nbsp; </p><p><br /></p><p>It takes time to expand the money supply in a manner which doesn&#039;t wake the sleeping giant of the masses. It will also take time for the physical market to supplant the paper market in determining the price. Ergo the more time that passes the more likely it is that there will be more pie and less filling, given current policy and current dynamics. This is an assumption of course as nobody knows the future, but it&#039;s what I would give the greatest probability of eventuality. As the pie increases or decreases in size, the value of the filling will adjust accordingly, so it&#039;s the same thing whether you look at it from a standpoint of the value of the filling or the size of the pie since the size of the pie determines the value.</p><p><br /></p><p>If you mean why do people care about the price as opposed to the measure of value, that&#039;s because we have been indoctrinated into a system where value is denominated in dollars instead of how it used to be where dollars were denominated in gold, and before that gold and silver.[/QUOTE]</p><p><br /></p>

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