Counterparties… counterparties… counterparties.
And no one thinks to examine the most basic factor of all.
Examine one of those scrips you carry in your pocket. Some people call them Federal Reserve Notes. Well, they are: “FEDERAL RESERVE NOTE” is actually printed across its top. It is, in other words, nothing more than a particular kind of promissory note. A promissory note is a kind of contract; and, on each side of the contract there is a party (or parties). If you are one of those parties, the person on the other side is a counterparty.
So, who is the counterparty relative to the Federal Reserve note?
When I was in the Navy, I was the lead electronic technician (ET) for a task force of 8 ships; when ET’s on other ships couldn’t fix gear, they’d call me. Most of the problems were too simple for them to see. For example, who would think to check the AC plug? It’s the simplest thing that could go wrong, and yet, nothing happens without secure connections to power. It would usually take me about 15 minutes to find this problem (more than once); and I never told them what I did; didn’t want to embarrass them.
We have the same problem today: people fail to consider the most basic of factors needed to secure capital: namely, our currency unit. Please read more.