When Silver Prices Finally Challenge Perception
The vocabulary in which modern monetary policy is expressed has created complacency and
acceptance. For example, people have learned to accept outrageous financial concepts like $1
trillion, when very few individuals have any sense of how much this actually represents.
Furthermore, people have become accustomed to elegantly expressed monetary concepts like
quantitative easing, when all the term really refers to is the printing or creation of more money
that dilutes the value of a country’s currency.
In politics, people have also learned to debate fiscal policy without ever effectively addressing
the $200 trillion in unfunded liabilities that are now beginning to come due as the huge post-
WWII Baby Boomers generation starts to retire in the United States.
Modern Financial Fallacies
Besides the lack of a realistic concept of exactly how much value a trillion dollars represents,
the people of the United States are increasingly conditioned to believe financial fallacies like:
Housing prices go up forever
The stock market always eventually provides a return
Operation Twist and Quantitative Easing are not forms of money printing
Even in the specialist sector, HFT and algorithm trading provide much needed liquidity
and remove risk and volatility risk.
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