Really interesting video. Oddly enough I just got done reading about the fed, reserve rates, and the money multiplier effect that this video speaks of.
I guess my question is that it has been going on for so long, that when does the music stop, and will it? If they have to keep the lending pumping to continue the system, but in the past couple of years they used up every trick in the book to continue the lending (fed lowering inter bank interest rates to 1%, arms, intrest only loans, etc) are the tricks all used up?
Could the massive amounts of money in the Yen carry trade effect this?
What can you do to prepare for it? Has the preperation already begun with the massive purchasing of commodities? Gold, Silver, Copper, Oil, Corn, you name the commodity, I'd bet it is up. Certainly if there is a collapse in the system even being short stock will not do you much good, as all you will have is extra worthless paper. You'd be much better off having a stockpile of oil or gold under your matress than a pile of cash if problems arose.
I've always wondered why, when you back out far enough and chart the DOW it has what appears to be exponential growth pattern. As seen here:
http://finance.yahoo.com/charts#chart6:symbol=^dji;range=19281010,20070711;charttype=line;crossh air=on;logscale=off;source=undefined
Is this a result of the exponetial growth of money?
The system is so huge that it is almost difficult for me to grasp, so I guess I just keep asking questions.
Studying economics sometimes can be frustrating like studying physics. In physics you always look at things "in a vacuum," and I feel that studying economics sometimes is very similar to that. When you take out the "in a vacuum" things get significantly more complex.