Understand the GAME

People understand the GAME

1. The ERA of monopoly money is coming to an end
2. The fractional reserve system is a CONFIDENCE GAME
3. And confidence comes from the trust in the paper which is called money
4. A credit boom which has happened has been of unprecedented proportions
5. This has ofcourse in turn led to bad capital/ misallocation of highest proportions
6. Today the KOSPI trading was halted because it fell 7%
7. MisAllocated capital should be allowed to wither away - hence defaults should be allowed to happen
8. Not letting those happen - only brings in bigger bubbles and busts
9. Thats when volatility leads to erosion of trust, erosion of ability of businesses to conduct themselvers without speculating, erosion of liberties of indivduals
10. What do you trust when nothing else works...
11. East would not be saved from this debt fueled bubble of west
12. Its a birth pang of a new ERA and the BIRTHS are always painful