Matt Taibbi: The Mad Science of the National Debt

[mbperrin]

1. Taibbi is doing some of the only good writing on this topic.

I have and recommend that my students do hold little cash and instead hold real physical assets, using those assets themselves, so that their intrinsic value cannot be affected by nominal values.

The only reason we haven't had massive inflation is because the bubble money is put into the shadow economy, mortgage derivatives, stocks and such. This has led to a crowding out of money for the real world, and has extended the stagnation we see now.