Quote:
Originally Posted by therapy23
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Being a bilingual Canadian, mistakenly thinking I had authored the concept of golden ballast, I feel compelled to respond: "Touche, eh!"
While there are lots and lots of lots for sale here in Abaco, it seems the prices have not (yet) started crashing.
Did anyone notice how *all* asset classes had a simultaneous rapid decline in Fall '08? Pursuant to my previous monetary message, my theory is that the value of the assets did not change, what changed was the length of the yardstick by which the assets were measured, ie money. The market figured out then, and suddenly, that a whole lot of debt (which is what money is) would not be repaid, thus decreasing the (fiat) money supply. When there are fewer dollar, each dollar buys more stuff.
What has happened since then as prices for many asset classes have recovered is that the rate of money production (through the assumption of huge amounts of government debt) has exceeded the rate at which it is destroyed through increasing lack of faith in the repayment of debt.
b2b