The grand trick of fiat currency

I met a retired Spanish policeman yesterday and had some beers at a pub. This guy has had a vital experience that is worth the envy of any spy movie character, which is something of note given his "limited" education (and lack of better terms to describe). I had not seen this guy for 4 months and I always enjoy his company. Having been destined to the Ukraine, having no less than five mistresses there, and currently collaborating with the secret service, it was time to share a drink.

After catching up, he brought up the issue of investments. He participated in Bankia's (BKIA.MC) public offering and I recommended he closed down the position because once the stock carer JPMorgan stopped lifting the stock price, it would come down very quickly. He chose to follow the advice of his financial advisor at the bank instead of mine and now he is losing one third of his position. I still recommended him to get out and he told me he could not make losses so he would wait to sell... here is some sheeple mentality.

Then we turned to monetary issues, I wonder where he had heard that since I don't usually talk technically to these people. He asked me straight: "What happens if they devalue the currency, let's say that I have 300,000 EUR in a savings account, would I have the same 300,000 EUR if they devalue the currency?" and I answered "yes, you would nominally have 300,000 EUR, but you would be able to buy much less" and he said, "OK, that's OK then". I did not go further into that conversation because I was not behind a bank desk and my words would fall into oblivion.

So there you have it, sheeple wanting to be sheeple, forever and ever. You could not lie to this guy on the street and you would not leave alive if you did but dress white collar and he would put all his money in the financial ponzi of your choice. Bankers are very bright people indeed and their fiat currency scheme, playing with absolute and relative concepts, is truly a great masterpiece.