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IPFS News Link • Fiat Currency

The Era Of A Financialized Fiat-Dollar Standard Is Ending

• https://www.zerohedge.com by Alasdair Macleod

An unstoppable rise in interest rates will in large part be responsible for their demise.

Financial markets in thrall to the state underestimate the forces collapsing the financial bubble. Even the existence of the bubble is disputed by those within its envelope. But financial assets represent most of the collateral securing the banking system, and their collapse triggered by higher interest rates will take out businesses, banks, even central banks and make financing of soaring government deficits impossible without accelerated currency debasement. 

Will central banks try to preserve financial asset values to stop the West's financial system from imploding?

Keynesian theory demands increased deficit spending to counteract the contraction of bank credit.

As long as this is the case, the planners will destroy their currencies - confirmed by the John Law episode in 1715-1720 France. It is from this fate that China, Russia, and the architects planning a new Central Asian trade currency are planning their escape.


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