This is a great article from the Mises Institute today, regarding the failure of Iceland’s currency, why it happend, and how it will ultimately happen to all fiat currencies (including the almighty dollar). Here’s an excerpt:
“As Richard Cantillon noted in his Essay on Economic Theory, enslaved humans usually produce for their masters about half the amount of finished goods that freed slaves produce for themselves. The great trick of the world’s elite may therefore have been to yoke the rest of us into debt slavery, without us realizing it, to feed their insatiable greed for power over the rest of us and to extract wealth from the rest of us, thereby avoiding Cantillon’s half-production trap, and thereby avoiding the need for they themselves to be in any way useful to anyone else.”
Disclosures: Paco is long gold and oil, and short Treasuries — all through leveraged ETFs.
Having trouble with RSS? Click here.
You can buy his novel Discipline wherever books are sold.