From what little I understand of the subject, it belongs to an age when
schooners at quayside exchanged merchandise for a bagfull of coins: no gold, no
deal.
It is simplistic to suggest that demoteing that ancient mode of exchange
accounts for the surge in international trade and todays era of much
prosperity, but
it was an important ingredient. Trade credits and exchange agreements, in
hand with
lowered tariffs ushered in the age of bulk carriers and super tankers.
Deficit financing, when controlled, is a useful government tool when applied
to
productive activity and job creation. Not so the Reagan-Bush fraud that goes
by the label
of 'trickle down' where mindless tax cuts were combined with massive spending
on
armaments: the rogues have now taken shelter under a new flag, bullion.
The West need not fear inflation, for now. With China consolidating, the
demand for
commodities has eased greatly, a good sign if I don't the drop in value of my
stocks.
