The Currency War, Part II
However most of this Western paper is worthless on a much more fundamental basis. Arguably, none of this paper has had value since the Nixon regime abolished the quasi-gold standard that "backed" the U.S. dollar. Since that time, any "value" in this paper has been purely implied -- almost identical to how a share in a corporation derives value.
We understand, if we have the misfortune of holding shares in a bankrupt corporation, those shares are worthless or nearly so. "Secured creditors" may be able to recover some of their own losses, however "unsecured creditors" (i.e. shareholders) often end up with zero.
Most Western governments are now obviously and utterly insolvent. The near-complete monetization of debt in both the U.S. and Europe is unequivocal mathematical proof of this point. To illustrate this, we must understand why the U.S. government and the eurozone have chosen to engage in almost complete monetization of debt.
It's not that there are "no buyers" for this debt in absolute terms. Rather, there are no buyers for any of these
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