I googled Lord Blackheath.. great story but short on verification...as far as I know there is nothing stopping the fed from printing as much money as they want and I don't think they fear of anyone because they are all very clever and pretty much in charge. I don't mean to say that I like what is happening.Without getting into a big discussion about money and banks and their role in the economy it appears that debt in the western world has/is spiralling out of control due in large part because of the reserve currency status enjoyed by the U.S.for so many years.Unfortunatelly some of the chickens are now coming home to roost due to the profiligacy of the U.S. in it's desire to be the policeman and sole superpower of all the world's nations.To keep it all running they need among other things lots of oil. Thus the great interest and attention in the middle east and other oil producing areas.Up until now the U.S. has only sought to secure supply of oil through the exchange of U.S. dollars with military force only to make sure that supplies continue.The whole game rests upon confidence in the U.S. dollar as the reserve currency.Reports of payments using other currencies or gold for example have been appearing. Gold is good because it is universally accepted and has no counter party risk.Some say gold is real money, that it can buy anything at anytime. Fiat currencies like the U.S. dollar are only created through the issuance of debt and therefore carry risk of default. So the Fed although they can print as much as they want have to always be wary of the ensuing debt and the ability of the economy (ie. the people of the U.S.) to service it. Right now it seems that many generations of people will be needed to service the outstanding debt, not only in the U.S. but in many other nations as well.So we have the U.S. government and others trying to control deficits and debt and the Federal reserve and other central banks trying to prevent any crisis of confidence in the financial system.Meanwhile in the real economy where people work and actually produce things of value through their efforts in mining ,manufacturing,agriculture etc and are mostly in debt for their homes,cars,creditcards and credit lines etc. life becomes a constant round of working to pay the bills.

Has it all been stretched too far? Large personal debts are not usually paid off in a year but can take many years.Large national debts just seem to keep growing, passing from generation to generation. At what point does it become so large that confidence starts to wane.I think it is starting and measures are being taken. Noone wants to see a collapse into depression and perhaps war of any kind,cold,hot or currency.

My only wish is that governments and central banks could sort things out so that the rest of us could live in peace knowing that our labor will sustain us and our families. Really wishful thinking ain't it?

In the meantime....Got Gold?