13 Pages Posted: 18 Apr 2010
Date Written: April 18, 2010
Few of the politicians or central bankers could see the credit crisis coming or its large impact. And who knows when it will be over. Billions upon billions of dollars have been used to bail out financial institutions. The massive bailout packages have been defended by statements asserting that the monetary and financial system is the lifeblood of our economy. If a series of big banks fails, the whole monetary system could fail and our whole economy could fail. Politicians and economists are now spending most of their time arguing about who to blame for the credit crisis and how to change the regulations so it never will happen again. Trying to solve the current problems in the economy is good, but too much focus on the present could make us ignore a potential disaster that could wipe out our whole modern monetary system. If you thought that the Federal Reserve and Ben Bernanke are the most powerful money masters in our current monetary system, you are wrong. There is in fact a much stronger money master that could destroy all our money within minutes, including the USD, the British pound, the EURO and the Ruble.
Keywords: Monetary System, Electronic Money, Solar Storms, Financial Fragility, Carrington Event
JEL Classification: A10, E10, E40, E42, E50
Suggested Citation: Suggested Citation
By Cullen Roche
By Espen Haug