An Incredible Piece by Lowenstein which sums up the fallacies of our system.

[moore_capital54]

http://www.businessweek.com/magazine/the-nixon-shock-08042011.html

[dcollon]

Nice, quick view of historic events.  Thanks for posting the link.

[Baoxiaodao]

http://www.businessweek.com/magazine/the-nixon-shock-08042011.html

 

Very nice one. Thanks!

[moore_capital54]

There is no doubt in my mind that this is truly the reason we are in the mess that we are in today. I would love to debate this with anyone as well. The problem I see is that so many investors, and even economists, are influenced by the Keynes school of thought, completely disregarding Rothbard, or the Austrian School of thought, or any financial history before the great depression.

 

That is why most people think that Ron Paul is crazy or extreme, when in fact we are lucky someone with his understanding of central banking and fiat money is in government. This is even true for value investors, who I find generally disregard these facts of life.

 

I consider myself a value investor and have earned a living deploying my capital according to the principles of Graham. Buffet once said, that value investing either makes sense to people or it doesn't, and usually it has to click right away or it never does. I feel the same way about Fiat Money, and fractional reserve banking. Either people get it or they don't. Either they can understand that for several thousand years we did not have a Fiat Money based system and this is all really an experiment gone wrong, or they just think its all nonsense.

 

As we are on the subject, my biggest critique lies with Munger and Buffet, who I know are intelligent enough to understand these concepts but deliberately sway the public in the other direction, all for the sake of exuding confidence in the system.

 

 

 

[ubuy2wron]

There is no doubt in my mind that this is truly the reason we are in the mess that we are in today. I would love to debate this with anyone as well. The problem I see is that so many investors, and even economists, are influenced by the Keynes school of thought, completely disregarding Rothbard, or the Austrian School of thought, or any financial history before the great depression.

 

That is why most people think that Ron Paul is crazy or extreme, when in fact we are lucky someone with his understanding of central banking and fiat money is in government. This is even true for value investors, who I find generally disregard these facts of life.

 

I consider myself a value investor and have earned a living deploying my capital according to the principles of Graham. Buffet once said, that value investing either makes sense to people or it doesn't, and usually it has to click right away or it never does. I feel the same way about Fiat Money, and fractional reserve banking. Either people get it or they don't. Either they can understand that for several thousand years we did not have a Fiat Money based system and this is all really an experiment gone wrong, or they just think its all nonsense.

 

As we are on the subject, my biggest critique lies with Munger and Buffet, who I know are intelligent enough to understand these concepts but deliberately sway the public in the other direction, all for the sake of exuding confidence in the system.

 

 

 

The fiat based money system has been in place for quite a while and we have witnessed a golden age in terms of over all wealth and well being.I think Buffett and Munger understand all too well some of the short commings of alternative monetary systems and feel like democracy it is a flawed system but better than the alternatives.