An interesting video on money creation I found in youtube. The first part of the video explains how the money system works. The second part of the video highlights the First National Bank of Montgomery vs Jerome Daly case which is also known as the 1968’s Credit River Case.
It’s going to be a hot sizzling Monday today. Washington now has one more day to solve the puzzle before the debt burst. Unless they come out with a fire-fighting plan, US will start defaulting on their record-breaking $14.46 trillion debt by tomorrow.
In short, the more money the Fed prints OR the weaker the dollar is the better it is for the PM market. That would happen if US raises their debt ceiling or decided to start defaulting its current debt. That’s the bull camp.
If Washington are able to stop ballooning their $14.46 trillion ceiling, not default its current debt AND turn their Federal P&L from red to black – that spells the bear for PM. Been spending my entire weekend catching up the debt news and to have THAT, is almost unlikely.
Following are some materials that would go along well with your morning coffee.
Last Wednesday, Federal Reserve Chairman Ben Bernanke openly denied gold is money when questioned by congressman Ron Paul at point blank. Check out the video below on Ron Paul debating with Ben Bernanke on the Federal Reserve’s decision on bailouts. The classic moment is at 4″55. A classic too great to be missed out on beautiful Sunday morning.
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