U.S. Economy Grinds To Halt As Nation Realizes Money Just A Symbolic, Mutually Shared Illusion

This headline deserves to be in the New York Times, not The Onion.

For a better understanding of why The Onion has it right when referring to today's Federal Reserve Notes, and Bernanke, Geitner and the majority of of economists and politicians have it wrong, read the posts and the vigorous, enlightening discussion which follows in the comments of a recent series from The Rational Capitalist:

"Economy Update and the Causes of Boom-Bust" , Part 1, Part 2, and Part 3, with Part 4 pending.

Here's Doug's own summary:

Part 1 - Today's crisis as an instance of the classic inflation-depression or boom-bust cycle

Part 2 - Positivism, empiricism and the self-induced myopia of the economics profession

Part 3 - Brief review and analysis of 19th century monetary history; gold the hero, government the villain

The most extensive debate is in the comments following part three on whether or not fractional banking is a legitimate practice, even when practiced privately and on a gold standard.

Thought provoking. Check it out.