Will we eventually get smarter from that crisis : don't let people make money!!!
Par Julien le lundi 14 avril 2008, 17:10 - Lien permanent
6 months ago, I wrote a
text about money, following up the Austrian economics.
In English, it's quite interesting to notice that very often people are
using the expression "making money" to refer to earnings.
What the current crisis is showing is a classical example of the dead end caused by taking this at the first degree.
For 10 000 years, people have been forbidding anyone to "make" money by
using Gold for it. Despite very famous attempts, nobody has ever succeeded in making
gold. The only ways to have gold is thus either to get it from Earth with hard
mining or to get it from a person that has some.
As gold is among the most scarce, there are more and more to buy for a relatively stable quantity of gold. Prices are so going down with time.
For the last 100 years, we forgot that and let states grant banks the right
to make money from nothing by manipulating the interest rates.
Typically when the Fed is lowering the rates, banks can make more money from nothing.
This more money will flow from banks to persons to buy things and give illusion of wealth, creating bubbles.
All the mistakes done with these new money will make people less rich and
will have to be "corrected" one day or another.
The current crisis, fueled by the very low rates set by Alan Greenspan in 2001, caused a bubble on houses.
What's the most incredible to me is that many people don't yet see that this
is the Fed that made this bubble and seems to thank it for solving it!!!
As long as we let people make money from nothing, they will do it so making
us less rich by decreasing the value of money and making bubbles that will have
to collapse with high collateral damages!!!
The only way to KILL the boom-bust cycles is to kill this right.
The only way to kill this right is to go back to a money that no one can make or destroy, gold.