Thursday, August 12, 2010

The Fiatocracy


Another brilliant article by Peter Souleles of Sydney:

Over 40 million people in the USA are reliant on food stamps yet in July men in suits paid 600 million sterling pounds for 240,100 tonnes of cocoa beans. Let the plebeians eat cake.

137,698 men and women filed for bankruptcy last month in the USA whist the average taxable bonus on Wall Street rose to $123,850 in 2009. Let them eat more cake.

Men in suits and with degrees argue whether we are headed for deflation or hyperinflation without understanding that the unemployed are doomed under either scenario. Let them eat cake as well.

A bankrupt US Government can borrow money for 10 years at 2.95% whilst struggling businesses seeking small commercial and industrial loans of about $500,000 were paying 3.5% more than the federal funds rate back in May according to the Fed's own data. And that's IF they could get the loan.......read in full

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