QUESTION: Hello Martin: Thanks for the posts – you on fire 🙂
Question– if the emerging markets collapse and the bond markets collapse, wouldn’t we have much less wealth world-wide?? If we have less wealth, isn’t that one of the things that helped drive the dark ages in Europe ?? So even if money is moving around isn’t there less to move??
Thanks
CW
ANSWER: Yes. This is why the Hyperinflationists were wrong. The could not understand that a $3 trillion increase by the Fed in money supply would not be inflationary. What happens is DEFLATION. This is why money suddenly buys more. The CDO assets collapsed in value. Hence, what had been a $5-7 trillion contraction in valuations worldwide, must be seen as an increase in money supply of even $3 trillion would be offset by the DEFLATION.
If we do not BLINK, you can go too far and that is the Dark Age and war. We are bringing together many people from around the world for our Think Tank. The purpose is to avoid getting labeled right to left regarding some party as they all are in Washington. With an international team, this will help defeat the labels. We are preparing solutions for governments to prevent the Dark Age. The timing will be critical. We will need all the help we can get from all readers to get the word out. PERHAPS, we can get them to blink. But there still has to be the crisis FIRST. Nobody will act until they have no choice.
