"No. Markets love competition. CEOs don't. Competition makes the markets perfect. Competition lowers prices, so CEOs hate it."

1. Market favours competition = competition lowers prices = lower prices require savings in the production/distribution chain = consolidation of businesses to improve bargaining power with suppliers (i.e. the WalMart model). It helps that CEOs today do not believe in organic growth. They prefer highly leveraged buyouts, M&As and takeovers. Why grow your company the old fashioned way when you can go on a spending spree? As an added bonus, it gives the apperance of the "bold leadership" and by extension, large bonuses and golden parachutes. I have a nagging suspicion you need to know only 2 things to be a CEO. In good times, highly leveraged takeovers to lift up your stock price for the next 2 quarters. In bad times, lay off workers and spin off the stuff you acquired to "focus on your core competencies".

"Andrew Jackson broke the Bank. If he could do so, today's continental-nickel-president could do the same."

2. Andrew Jackson isnt facing the political machines on both sides of the beltway today. Congress is in perpetual campaign mode. Campaigns require dollars. Short of invoking emergency powers, I dont see it happening. Personally, I like Obama, and I think his heart is in the right place. But politics is the art of the possible, and Obama has unfortunately been dealt an impossible hand

"Bubbles were not the case in the pre-Paper money era. The Gold standard brought some of the most stable economies of all time. The Fed didn't interfere in 1929 depression."

3. Gold Standard? Not gonna happen. Like you said, Wall Street owns Washington. And like I said, cheap credit is the only game in town.

"Pleeeaseee... If banks did NOT extend credit to every tom, dick and harry, there would no living beyond means. As you said greed is human nature. People do expect cheap or free credit to live beyond their means. The banks, as repositories of public money have to ration this credit. Economics 101."

4. Not gonna happen. Bankers drink the most kool-aid of all. Anyone who can convince themselves that financial wizardry creates value is no longer anchored to reality, and so is in no position to recognise the responsible course of action. Seriously, can you imagine someone on the Board of Directors getting up and saying "Hey, we need to start turning off the credit taps. Our easy credit is fueling a bubble that is making us tons of money in the short term. We need to do the right thing, howling shareholders be damned!" I don't think they were dishonest per se. They just allowed themselves to buy into the hype. Remember that book "Dow 30,000"?

"Not luck. By Design. 1944 Bretton Woods Conference. In addition the dollar is backed by "regime changining" military force that no other nation can afford. It is a case of the biggest bully backed by biggest club who forces every one to "donate" their lunch money to him."

5.Nice analysis on Bretton Woods. I like to think of it as fringe benefits for WWII. In all fairness, I don't think at the time it was framed that the intention was to prop up the US. Their interests were short term - rescue Europe from the precipice. Whatever the case, its the gift that keeps on giving.

I'd like to hear what you think the trigger will be. I'm thinking the impending Social Security crisis / boomer retirement, combined with America's already crushing debt will at some point force a devaluation (printing their way out of debt perhaps?). All the foreign creditors will then rush for the exits at the same time, resulting in financial armageddon.

BTW, on a sidenote, my favourite quote on economics?

Dick Cheney - "Reagan proved deficits don't matter"

I wanna get that as a ring-tone. It always cracks me up. Anyone know where I can find it?