by Dr. Jeffrey Lewis, Silver-coin-investor:
They will never admit they are the problem, whether enabled the regulator, the enforcer, or one of the large public financial institutions. Weimar central bankers would not accept that their policies were the overriding problem. Rather, they believed they were responding to outside forces. Their responses only got bigger.
– from Adam Ferguson’s When Money Dies: The Nightmare of Deficit Spending, Devaluation, and Hyperinflation in Weimar Germany
If people bring so much courage to this world the world has to kill them to break them, so of course it kills them. The world breaks everyone and afterward many are strong in the broken places. But those that will not break it kills. It kills the very good and the very gentle and the very brave impartially. If you are none of these you can be sure it will kill you too but there will be no special hurry.
– Ernest Hemingway, A Farewell to Arms
The dominant school of thought rests it case on the premise that no matter how direct or egregious, out in the open, or surreptitious the intervention actually is- ultimately, ‘the markets’ will prevail. This common view also emanates from the world of alternative investing, including the thought leaders in sound money.
True market value will always be expressed eventually. Fair value will and must exert itself from ‘digits on high’ all the way to the farmers’ market and the retail store.
It will not be a smooth return to equilibrium. And no one can predict details of how we arrive. However, ignoring the basic functioning along the way – for the privilege of being right is a flattery without substance.
There remains, even in the world of sound money, a willful blindness when it comes price manipulation that is summed up best with the following statement: “So what if the price is rigged?”
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