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A Silver Coin to Save the Common Man

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					A Silver Coin to Save the Common Man

The interrelationships between money, credit and the banking system mean that the stability of
the current system is dependent upon the ability to service credit expansion, or in general the
debt/GDP ratio.

With very few exceptions, every country and financial system in the world share the same fiat
money platform with credit-money creation through fractional reserve banking.

Due to its lack of diversity and a solid base, the entire system is at great risk, and has already
started to implode as evidenced by the current steaming pile of economic turmoil which exists in
the European Union. These very same dynamics helped to create the problems that built up in the
global economy between countries running trade surpluses and those absorbing ever-rising credit
flows.

Credit Expansion and the Risk of Systemic Failure

Due to the consolidation of the banking system into larger and larger corporate entities, the
system has become less diverse where banking activity has become more concentrated in only a
tiny fraction of banks. These ‘too-big-to-save, too-big-to-fail’ banks have become the norm in
the current financial quagmire.

Reducing diversity in the financial system effectively removes the buffers which prevent
contagion caused by coupling sovereign financing and the banking system ever more tightly. The
result can be read in the explosive increase of the "money supply" of every nation since 1971.

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posted:8/11/2012
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Description: When the financial system becomes completely inaccessible to the mainstream saver, all that will be left is the protection of a gold or silver coin.