ConclusionThe Perfect Storm: The Beginning of the End of the Monetary Confidence Game
As you can see, theoretically, our government should be able to exert enough control over our fiat monetary system to avert any form of deflationary period. However, due to the fact that our government is not the only actor within our economic system, this “theory” is an unworkable one in reality.
In reality, we have been on the periphery of “The Perfect Storm” for the last several years. We are now heading right into the eye of the storm. The casualties of this storm will be a significant amount of the public’s investment and bank accounts. The effects of this storm will potential change the psyche of the public for several generations to come. We are heading into the heart of a storm from which the government will not be able to rescue us. And, when it is too late, the government will only cause more problems, as governments usually do.
HT Sustainable Earth
Bleak Prospects Paul Krugman