The inflation-deflation argument ;

. . . is a core one that affects everything
from one's personal economic and political
philosophy to one's pocketbook and, ultimately,
how one invests.

Believe in significant price-deflation,
long-term, and you may not wish to put
your cash into current high performing assets
such as gold and silver.

You may come to the conclusion that politicians,
chastened and disciplined, will stick to austerity
programs and that therefore cash is king."

The Daily Bell suggests
that in a depression, you might be
better off to invest in paper dollars
than in paper stocks since, clearly,
in all depressions, "cash is king".

Why is cash king?

Because
depressions signal currency deflation.

As a currency deflates,
it becomes more valuable.

If $1 will purchase a loaf of bread
today, after deflation, that same dollar
may purchase two loaves of bread tomorrow.

Because deflation causes
the purchasing power of cash to increase,
everyone wants to have and hold cash.

Cash becomes more desirable
and thus "cash" becomes "king".

I agree
that during depressions, "cash is king".

But unlike The Daily Bell
(which appears to presume
that our cash will be paper, fiat dollars),
I contend that during a depression "king cash"
will be gold or silver coin-just as it was
during the Great Depression.

Remember,
during the Great Depression,
cash was king but all of our paper cash
was backed by silver domestically
and by gold internationally.

Thus, while paper cash may have
appeared to be the "king," the real king
was then, and will be again, monetary metal
http://adask.wordpress.com/2010/07/11/835/

Tragically,
the Dodd-Frank permanent bailout
proposal will deliver a formidable blow to
American families and main street entrepreneurs.

With Dodd-Frank,
the Democrats have set out to reorder
America's entire economic system and
sever ties with the free-market principles
that have guided our nation to
unprecedented prosperity."

The financial reform legislation
(also known as Dodd-Frank), agreed
to by House and Senate Democrats in
a conference committee and then passed
by the House of Representatives, not only
takes away the freedom of a large Wall Street
firm to fail, it also takes away Main Street's
freedom to succeed.

The legislation would increase the size
and scope of the federal government,
regulating every phase of economic activity.

The legislation would also make
permanent taxpayer-funded bailouts
of large Wall Street firms.

Due to the bill's excessive taxes
and government red tape, families
and small business owners would no
longer have access to low cost credit,
and a bureaucrat would stand between
them and living the American dream.

The United States Senate should reject
the Dodd-Frank bill because it is a job-killer
that will only bail out politically connected firms.

Moreover
the Senate should insist that any
financial regulatory reform legislation
address the taxpayer subsidies of
Fannie Mae and Freddie Mac
http://www.humanevents.com/article.php?id=38045