Quote from deadbroke:
I like moneh
Getting a bit desperate with your thesis eh? Well, not to worry, when the Ben Bernank annihalates your ass at least you could say ISLAGI(ATT)
It Seemed Like A Good Idea (At The Time).
The bottom line is that if cash appreciates too much (or indeed at all) every government in the world is going to go belly up. Until we get real public discontent against their policies which are aimed at reducing the debt with limited public outrage (I believe Bill Gross or someone else calls this financial repression, and that is a very accurate term) which I think we are unlikely to see considering the fact that most people still have a house, a car and a TV.
In the meantime cash will continue to be trash as governments squeeze the financial system to get out of their predicament. This could last for at least a decade or two by the way, it's a really big debt load that has to be unwound and these methods are very slow but relatively painless compared to a global restructuring.
If there were to be a global restructuring, which is an idea I had a bit more than half a year ago, then cash would be king and literally everything else would go down in value. This scenario is looking exceedingly unlikely at this point.