“Financial markets, like religions, are faith-based networks.
The complex structures of assets and liabilities that comprise markets are held together by a set of underlying beliefs. Unlike religions, however, financial dogmas are occasionally shown to be false.
We experienced such a moment last week, when the Chinese authorities chose to devalue their currency.”
Contemporary global finance is a complex “system” of interwoven (electronic) “faith-based networks.”
As the bursting of the global Bubble unfolds, myriad “financial dogmas” will be exposed as bogus. Too many have been little more than chicanery.
For the most part, global finance is comprised of a labyrinth of IOUs. And IOU value hinges on confidence, faith and trust.
Over recent years too much of global finance has been underpinned – directly and indirectly – by concerted efforts of the world’s central bankers.
More http://b4in.info/toiC
'via Blog this'
No comments:
Post a Comment