Caution, Watch Out Muni Bonds !

[Rearden Metal]

Quote from mgabriel01:

So....
What nations have currencies that are 100% backed by precious metal or some other commodity?
Any?

The Swiss Franc <i>was</i> partially (40%) backed by gold reserves until 2000, when it unfortunately became 100% fiat like every other currency in the world.

 

[piezoe]

Quote from Avid_Consumer:

dollar devaluation is the path of least resistance. rich get richer, the destruction is difficult for ordinary people to understand, politicians don't have to make a stand, keep printing spending and promising, etc

i'd expect the left/right political establishment to play that card to the point of destruction. it's just too large a problem for any mainstream politician to take a stand on. presumably it will change when the damage is literally in-our-faces-unignorable and the majority literally can't afford to continue

politicians might prolong monetary dilution with synthetic war and fear. seems almost too textbook to be true, but also seems to be the path we're all on. i hate to be so simplistic, but i believe it is that simple

default seems less likely than bailouts. i'd be impressed if it went the other way

I'm surprised to find we think a like. We are a nation of crises, as i suppose any nation that has a huge political inertia is. We only pay lip service to a problem and enact ineffectual popular "remedies" until the problem becomes acute -- then. finally, with our backs against the wall, we act. The question is: "how long can we play this game of brinksmanship before we find ourselves in an irretrievable situation?

I like your expression: "synthetic war and fear." It says far more than might, at first glance. be realized. You might think of copyrighting that.