Monday, May 04, 2009

Housing Bubble

People hear that the root cause of the bad economy is this darn housing bubble. If only we could fix this mess caused by the housing bubble then things would be right as rain once more. No more toxic assets - if such an oxymoron could exist.

Well my children you keep crying over your popped balloons but you never give consideration to the air you blew into it? That's stupid and if you don't realize this you are sure to blow too much air into another balloon until it pops in your face. Stop cussing the exploded balloon and start condemning the too much air.

What does this talk of balloons have to do with the economy? In any modern economy, air is the money supply. If we had a legal form of money based on gold and silver that we owned then the value of the money would remain stable like the balloon that has been inflated with air and tied off at a stable point. But we have a currency that is inflatable meaning the private secret central bankers can create more and more of the stuff any time they feel like it. They are the ones blowing up the bubbles by constantly inflating the money supply. They are the ones responsible for popping the housing bubble. They blew it up...in more ways than one.

With your balloons and the economy you can see and feel the pop but the air and the quantity of fiat money in circulation remain invisible. Just because you are not privy to the amount of money in circulation doesn't mean it hasn't caused the housing bubble - among many other bubbles. The question is, are you going to let these sneaky private international bankers continue to be able to foist this fake money on you and pop your bubbles in the future?

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