From Daniel Oliver at Myrmikan Capital, here:
Like any Ponzi scheme, the fractional reserve system must periodically collapse because wealth creation cannot stem from an eternal expansion of credit. Betrayed and confused, the little people march into the halls of power and hang the perpetrators from the nearest lamp posts. ...
When the next crisis comes, as it must, the central banks of the world will face the same choice as in 2008, only on a larger scale. They will have to decide whether to allow the major banks to fail, wiping out trillions of dollars of paper wealth and plunging the globe into a 1931-style bond market failure depression, or to print money on an even larger scale.
That crisis may be here now, which, perhaps, is what the gold markets have been telegraphing for months. ...
