What the Hell is Money?

America has a fiat currency. Fiat meaning faith. Taken at its simplest the government prints a bill which it says is worth this much and people believe them. Dave Barry pointed out it's the tinker bell system from Peter Pan. Clap if you believe in fairies. The logic goes if you clap then fairies exist.

Does anybody believe in the people who found time to include in the 'Bailout Package' tax breaks for kids wishing to purchase Wooden Arrows in Oregon?

From the markets reaction to the bail out package the answer was a resounding, 'No!'.

If only there had been cool headed leadership instead of Johnny McManiac claiming the economy was about to 'Crater' (Crater!?) or George Bush saying trust me or the world economy will collapse....

Trust George Bush's team to become the saviours and stewards of international finance? Are you serious?

So how much fiat is left?

No fiat therefore a broken monetary system therefore no liquidity therefore economic chaos.

Looking at some of these financial derivative packages requires suspension of disbelief: look up CDO squared obligations or Credit Default Swaps.

Modern Finance was as incomprehensible as modern art and even more profitable.

The notion that world finance is the tinker bell system raises some questions. Questions I wrestle with late into the night until my mind wanders to the austere beauty of the Kazhak mountains of my birthplace.