FLYING MONEY

REF: Depresssion 2010- Western Fiat-Money Finished? www. theDailyBell.com

The Chinese called fiat money flying money because it could fly away so fast, and you just couldn't hold on to it.

We can attribute its' proliferation to Kublai Khan, Ghengis Kann's grandson.

Marco Polo said:"You might say that [Kublai] has the secret of alchemy in perfection...the Khan causes every year to be made such a vast quantity of this money, which costs him nothing, that it must equal in amount all the treasure of the world."

He also said:"This was the most brilliant period in the history of China. Kublai Khan, after subduing and uniting the whole country and adding Burma, Cochin China, and Tonkin to the empire, entered upon a series of internal improvements and civil reforms, which raised the country he had conquered to the highest rank of civilization, power, and progress. ...

"Population and trade had greatly increased, but the emissions of paper notes were suffered to largely outrun both...All the beneficial effects of a currency that is allowed to expand with a growth of population and trade were now turned into those evil effects that flow from a currency emitted in excess of such growth. These effects were not slow to develop themselves...The best families in the empire were ruined, a new set of men came into the control of public affairs, and the country became the scene of internecine warfare and confusion."

Fiat money, when first introduced, is a shot of adrenalin for the country involved. Everything is prosperous, buildings are built, housing developments spring up, factories are humming and personal service industries grow. As was the case in 2002, reflation, an increase in the money supply can also cause "prosperity".

According to the referenced article :"Monetary stimulation can go on for years. In America, it's been going on for nearly a century - which is probably the far end of what can be expected. But people can live and die under a central banking regime - which is usually a fiat regime (or ends up that way, anyway). Yes, it cannot be emphasized enough that fiat money (along with its enabler, central banking) is a foundational curse. Just as in China, it funds wars, makes the government look wonderfully efficient and even omnipotent, fools people into believing that the non-essential jobs they have are actually essential "modern" work - and sets the stage inevitably for regulatory regimes that must eventually descend into madness and ruin."

With Love and Kindness,

THE HATMAN