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Author: namkato Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 457405  
Subject: Re: Triffin's dilemma. Date: 10/6/2012 11:51 PM
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http://www.zerohedge.com/news/2012-10-05/guest-post-gold-and......

<<"It was the outcome of an unbelievable collective mistake, which, when people become aware of it, will be viewed by history as an object of astonishment and scandal"
-Jaques Reuff 1972>>

<< Triffin exposed serious flaws in the Bretton Woods monetary system and perfectly predicted its inevitable demise yet his work remains largely ignored and unstudied by today's mainstream economists. This "flaw" became known as the Triffin dilemma, and many believe Triffin's dilemma has as serious implications today as it did 50 years ago. In short, Triffin proposed that when one nations currency also becomes the worlds reserve asset, eventually domestic and international monetary objectives diverge. Have you ever wondered how it's possible that the USA has run a trade deficit for 37 consecutive years?>>

This fairly concise article by Joe Yasinski and Dan Flynn is as macro as you can get, and provides a clear understanding of our present world fiat monetary system that replaced Bretton Woods, and how it is certain to run off the rails just like Bretton Woods did. It posits that the system failure is already underway. Very clear and logical stuff.

Ed.
================================================

So, the takeaway is that human devised systems are inherently flawed.

This may come as a shock: they ALWAYS will be.

John Mauldin and Zerohedge and Matt Taibbi and Peter Schiff will ALWAYS have major complaints about something. That is how they make their livings.

The world will ALWAYS be going to hell in a handbasket.

Knowledge of this kind of information will never make it possible for speculators to time the markets on a consistently profitable basis. Never. There is not a SINGLE metar poster who can claim this ability (it makes me laugh that a poster would make a big deal about her stock picks, when it turns out that they only comprise 20% of her investable funds, and the rest is in bonds earning less than 1%; even if her picks beat the indexes, she is still a loser).

Buy assets when they are cheap, with a margin of safety. Nothing else works.

The rest, like the OP, is just noise.
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