Global Financial Maelstrom Continues, Government Policies of Insolvency

Interest-Rates / Global Debt Crisis Apr 19, 2010 - 02:25 PM

By: Ty_Andros

The global financial maelstrom continues to unfold as public serpents, central banks and crony capitalists continue to pour gas on the fires. It is set to continue. The collapse of FIAT paper wealth storage is unfolding with breathtaking speed. Asset bubbles continue to emerge in the emerging world and collapse in the developed world as capital FLEES. Today’s missive covers the deep insolvencies in the developed world and the definitions of solvency of Austrian Economics. The inflationary depression still lies in our futures.

First let’s look at the definition of insolvency, courtesy of Jim Sinclair’s www.jsmineset.com:

The Austrian School’s Seven Commandments:

The Austrian free-market economists use common sense principles.

* You cannot spend your way out of a recession.
* You cannot regulate the economy into oblivion and expect it to function.
* You cannot tax people and businesses to the point of near slavery and expect them to keep producing.
* You cannot create an abundance of money out of thin air without making all that paper worthless.
* The government cannot make up for rising unemployment by just hiring all the out of work people to be bureaucrats or send them unemployment checks forever.
* You cannot live beyond your means indefinitely.
* The economy must actually produce something others are willing to buy.

Thank you Jim, and to my readers I highly recommend this website. This is part of the definition of INSOLVENCY or solvency, depending on whether your government behaves in the opposite manner.

“By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million can diagnose.â€