Gold – the final bubble, page-4143

Chaz,

"Gees Timber, you still don't get it. They have paid back by printing more paper money."

We are either talking here about TRAP money or QE.

In the first case the assertion is that the banks paid back the TARP money with printed money when in fact Treasury was paid back through the sell of the assets that it received from the banks and that were secured with equity warants.

In the second case, what happened was an exchange of bonds for money at a time when money and bonds became interchangeable as they were paying the same coupon. Yes, money as reserves was and aparently still is paying a 0.25% coupon.

On this one, you got a -90.

"If you have nothing to back up your money with what is its worth? Toilet roll cost more than any denomination of the us currency"

Apart from the fact that I would not mind to have a truck load of us denominated bank notes and that most money today is electronic money, the value associated with the objects or simbols representing money has nothing to do with their costs of production, but with social norms and conventions that render such objects appropriaste for the role of means of exchange. Cigarettes, shells, catle, bronze axes and rings, beads and necklaces, tokens of different kinds, lumps of precious metals, etc, etc, all have been used as money.

On this one I give you - 10. All in all -100.