Zeev's Turnips Patch-No Politics (ZEEV)

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Would that be an explosion of liquidity?

I mean, seriously, if you really believe the world is coming apart at the seams, how would holding onto cash in the form of paper currency help you? How many types of financial instruments are out there? Cash, bonds (including life insurance, which matures when you die), stocks and gold, besides the home you live in, which is not exactly liquid for trading. If the financial system comes apart at the seams, the natural course of action in a democracy is the printing press; that means cash and bonds are dead in the water, or the flood of liquidity. Only stocks and gold can hold their heads above water by virtue of being priced in a depreciating currency. If things get really bad, gold trading could still be banned by the government like during the Civil War and at the bottom of Depression.

It's all about trading one bucket of putred mess for another; don't get your nickers in a bunch because the particular one you are looking at smells bad.