Quote Originally Posted by Crocodile View Post
... the absolute value of the public markets is still growing making the public richer. So, the fiat currency makes that happen faster than the backed currency. What do you think of that?
It appears that perhaps I haven't made clear the significance/ramifications of debt deflation.
Perhaps we could liken the situation to public health. Centuries ago we did not know what were the causative agents responsible for cholera, plague, yellow fever, polio etc. But people gained more and more knowledge about these kinds of things until the 19th and 20th centuries when it became possible to prevent many such things by having sanitation laws, clean municipal water supplies, medical support treatments, etc. We know now what to do in many such cases to reduce the incidences of various diseases, not all of them of course, but huge strides have been made.
Likewise in finance, we know what causes a great many problems, but we let the disease , the dysfunctional agents, actually run things. We know how to prevent problems. Enough is known, but crazy doctrines are promulgated, like false religions, leading people over the cliffs. If you want medical care, you know who to go to. If you want economic health do not go to economic witch doctors.

Maybe this can help you see the tip of the iceberg: http://www.zerohedge.com/article/ecb...ean-central-ba