RE: The Psychology Behind Bailouts. Why Obama is at the Mercy of Game Theory
Great post and it applies just as much today. Politician are driven by the short term interests of the election cycle in many areas of life and this is just one. In order to maximise their chances of staying in a job they are happy to pass the buck on to someone else further down the line. It will keep continuing and we will keep having these booms followed by the bust of recession and more borrowing, QE and the like to restart the cycle.
That's one of the many reasons that a lot of us get into crypto like Bitcoin. The amount of Bitcoins is fixed (once they are all mined) and no government can decide to print more.
I think one day when people realise the folly of fiat money and how governments manipulate it - the only true reserve currency will be Bitcoin (or something like it).
This is because it will be the only currency that everyone can trust and politicians can't play these kind of shenanigans with.
I like Bitcoin. I just like gold more. But you're right, politicians can't manipulate bitcoin, which is a huge upside. If bitcoin or cryptocurrencies could be backed by gold, I'd be more convinced. Perhaps there are people working on this application as we speak. One company that I know that is trying to combine the block-chain technology and gold is goldmoney.com formerly bitgold.com. I'm very impressed with their product. You should check them out.
I do know of them. I think I might one day get some gold too. Right now I think there is more potential in crypto though - if I make a decent amount I will probably put some into gold.
haha, boy was I wrong so far. Crypto is exploding. bitcoin and litecoin to the moon.