Home A Flood of Money

A Flood of Money

user profile picture Chris Martenson Oct 13, 2008
0 69
placeholder image

Well, the G7 met and decided that what we needed was, unsurprisingly, a flood of money.  An unlimited wall of new money to replace the money that mysteriously evaporated into the mist of the credit crisis.

I say "unsurprisingly," because this has all been tried before.

When John Law’s infamous credit experiment started to unravel in 1720, the French authorities first resorted to decreeing that their failing paper promises were worth more than gold  and silver, and then, upon the almost immediate failure of that edict, to printing as much as necessary to buy out the failing equity and debt issuances upon which the entire bubble was formed.

The whole thing collapsed in rather short order, and the angry, destitute crowds took matters into their own hands shortly thereafter.

Here’s how I summarize the news from this weekend:

And I almost certainly missed a few things, because it was a firehose of information.

And the US? $1.5 – $2 trillion total cost for the next year.

So far I have not yet read ONE article that asks the most obvious question of them all, "Where will all this money come from?"

That’s it. That’s the $64,000,000,000,000 question.

"Where will all this money come from?

It’s a pretty obvious question.

So how come nobody is asking it?

Because the answer is the same as it was during the French South Sea Bubble in 1720 – it will be printed up by central banks.

Which raises the uncomfortable follow-up question, "So why is it that we are expecting a different or better outcome this time?

It is a serious question, and it deserves a serious answer.  But it’s hard to get an answer to a question that practically nobody is asking….

This is exactly why I created the Crash Course and spend so much time writing this blog and Martenson Reports:  If the people in charge aren’t going to ask serious questions and offer serious answers, it is up to us to do this for ourselves.

0 0 votes
Content Rating
Notify of
Oldest Most Voted
Inline Feedbacks
View all comments
Collapse all threads


Nothing yet

Most active members

2878 posts read
1565 posts read
1013 posts read
906 posts read
865 posts read


Learn more
Would love your thoughts, please comment.x