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User Info	Pillars of deflationists' arguments disputed; entered at 2007-12-02 13:34:43
Ponzi_unit Posts: 6515 Registered: 2007-09-05	Excellent post Gmak. A short squeeze on money and something of trade value must replace it. What can happen is a denial of services if you don't have the right kind of money. Trust in corporate digital money or maybe call it contract money (SIV,CDOs,etc.) has vanished, but trust in consumer digital money, credit cards, remains. Normally people don't need much cash money to make it through the day. Per chart, in 1955, apparently as long as everyone had ready access to $183 in any given day the economy functions. Today that figure has ballooned up to $2,674. There is a bullish argument for Mastercard found here: as an accepted exchange transaction device regardless of the condition of cash money or virtual corporate contracts, the show must go on (unless there's no show of course). As a public company (mastercard), the dozen or so major banks who created the stand alone entity could simply vanish on the very same day and in a matter of days or weeks the data base could transfer over to a solvent entity. All Mastercard has to do is keep watch that its accounts receivable are up to date and they're good. Last modified: 2007-12-02 13:43:54 by ponzi_peon 2007-12-02 13:34:43