Hannah Arendt, Origins of Totalitarianism
"The paper system being founded on public confidence and having of itself no intrinsic value, is liable to great and sudden fluctuations, thereby rendering property insecure and the wages of labor unsteady and uncertain.
The corporations which create the paper money cannot be relied upon to keep the circulating medium uniform in amount. In times of prosperity, when confidence is high, they are tempted by the prospect of gain or by the influence of those who hope to profit by it to extend their issues of paper beyond the bounds of discretion and the reasonable demands of business.
And when these issues have been pushed on from day to day until the public confidence is at length shaken, then a reaction takes place, and they immediately withdraw the credits they have given; suddenly curtail their issues; and produce an unexpected and ruinous contraction of the circulating medium which is felt by the whole community.
The banks, by this means, save themselves, and the mischievous consequences of their imprudence or cupidity are visited upon the public.
Andrew Jackson, Farewell Address, March 4, 1837
Stocks slumped once again today, after putting in their customary early morning rally attempt.
Gold and silver also slumped as the Dollar took a solid hold on the 110 handle.
Thanks to the declining yen and to a lesser extent the euro.
The yen and euro are the two largest DXY components.
Overall the economic outlook for most of the developed nations looks lethargic to gloomy.
No surprise that faithful retainer-to-empire Boris Johnson thwarted an early attempt to resolve the conflict in the Ukraine.
The Anglo-Americans seem determined to have a protracted economic proxy confrontation with Russia— to the last frostbit and impoverished European.
The VIX slid higher.
I almost spit my coffee out this morning when a talking head on bubblevision posited the new British PM Liz Truss as another Franklin Roosevelt.
As if.
The high ground still looks like a good place today, with the occasional foray into shallow waters.
Have a pleasant evening.
