Oct 07 2010


You know, with it I can move the world.

So I think we need to distiguish between paper and paper.

Currency of any kind is an illusion, you can eat gold but you’ll starve to death on it.  It’s a medium of exchange and a store of value.  As tasty as a vinagette makes it there’s no nutrition.  But people will trade potatoes for it so there is some utility.

And then there is leverage.  All I need is my down payment and then it’s all a cash flow problem Ponzi scheme.  These bets may be backed by the kind of insurance AIG offers but the illusion is gone.

These are nothing but desperate bets on black and even double zeros are not providing the margin the house needs to stay open.

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