The Curse of Fiat Money

I don't suppose you were looking at what happened to gold and silver today, did you?

Guest Post: The Curse of Fiat Money | zero hedge: "The Fed's monetary policy tries to keep the balance sheet of the commercial banking sector from shrinking. For a shrinking of banks' assets would be accompanied by a decline in the credit and money supply — a development that is widely seen as being harmful to production and employment growth.

However, this is a severe, and actually fatal, misinterpretation of cause and effect. It is bank-credit expansion that has brought about the trouble in the first place, and a policy of ever lower interest rates, provoked by ever greater doses of credit and money injections, is not going to solve the damage done but will actually make matters even worse."

RTWT.