investorzzo's picture

Fall of Saudi Arabia to end dollar reserve system?

The civil unrest in Egypt is growing fiercer. Electronic communications have been shut down throughout Egypt and massive demonstrations have been planned for today. A changing of the guard in Egypt would be a massive political shift indeed, but what if the disturbances don't stop there? What if they ultimately spread to Saudi Arabia and end up bringing down the dollar reserve system?

investorzzo's picture

My blog Silver

Decided to start my own blog on silver. I'm not a html writer, so don't expect miracles. I am focusing on tlhe best info on silver and of course some knowledge about, you'll read it in the header. I realize there are a thousand blogs out there, but well- can't help myself. :~) Jon

scepticus's picture

The Fiat Solution: the only equilibrium interest rate for fiat economies is zero.

The Fiat Solution

My essential claim is that an economy using fiat money can only find a stable equilibrium at short term rates at or near zero, and that the last 40 or so years have been the period during which the economy, led by the markets – not the monetary authorities – has moved itself in that direction from the unstable starting point (a fiat regime with significantly high nominal interest rates). I call this hypothetical zero interest rate equilibrium for fiat money economies the fiat solution.


investorzzo's picture

Zero effect

Lets see who can devalue their currency fastest!

DeeG's picture

Are we heading towards a paperless economy?

What frightens me most is that there doesn't seem to be a real explanation as to how our country is still able to ignore the bubble. How are they keeping this "false" economy from publicly collapsing on itself? What will it take for us to REALLY address this problem? Are we simply going to go completely paperless? Is going paperless a solution to this problem?

Johnny Oxygen's picture

Andrew Jackson Knew.

In Andrew Jackson's farewell address, March 4, 1837, he talks at length about banks, foriegn governments, fiat currency, gold and silver and more. In fact the last half of the adress is dedicated to fiat currency and banks.

Its worth a read in that so much of what he says directly pertains to what is taking place now.

Here are some quotes:

A. M.'s picture

What's so wrong with Keynes and Fiat, anyway?

Silly question, right?
Well, during a conversation about the mismanagement of our nation today, a professor of mine essentially called me an idiot for blaming our nations adherence to Keynsian economic principles and a fiat currency. Now, while I didn't have the prescience of mind to continue the fight for long (nor the interest), I did specifically take notes on his comments;

"The nations that adopted Keynsian economy survived the great depression. Those that didn't died."

"Fiat was around for a hundred years before Keynes was born."

JAG's picture

Our Monetary System Is Not a Fiat Money System*

Note Bernanke’s assumption (highlighted above) in his argument that printing money would always ultimately cause inflation: “under a fiat money system“. The point made by endogenous money theorists is that we don’t live in a fiat-money system, but in a credit-money system which has had a relatively small and subservient fiat money system tacked onto it.

John99's picture

All We Have To Do Is Buy 1 Physical Ounce of Gold, Each.....

“Whatever you do will be insignificant, but it is very important that you do it." Gandhi.

Want to protect your nest egg, make a great investment, and send a message to every Bankster in the world?

John99's picture

Is anyone else worried about a Global Currency?

We have had China, Russia, some of the EU countries, and now the United Nations calling for a 1 world currency.

Chris said in the seminar, 'money is a call on labor'.

Our fiat currencies are not born out of labor like gold and silver, but something magical and mythical created out of thin air and issued as debt. This is usury. Money issued as debt creates slavery.